The German sandal maker, Birkenstock, is considering an Initial Public Offering (IPO), valuing it at £4.7bn.
Birkenstock, the iconic comfort sandal brand backed by private equity house L Catterton, is ready for an IPO. In 2021, L Catterton bought its major share when the brand was valued at £3.4bn.
Financiere Agache, the family office of LVMH chief Bernard Arnault, also bought a significant share in Birkenstock.
According to a reliable source, L Catterton is working with advisors on a potential listing in New York. Additionally, the report cites that shareholders will execute the plan this year or the next. For L Catterton, it could mean an early exit with the skyrocketing trend of Birkenstock’s ‘ugly sandal’.
However, the Birkenstock family is still deeply rooted with the brand since 1774. The Birkenstock brothers, Christian and Alex, still hold a major share of £1.3bn, even after selling a stake to L Catterton.
When the company began, the brand did not enjoy its position as a ‘supportive footwear‘ manufacturer. Johann Adam Birkenstock established the brand in 1774, and the company had registered itself as a vassal and shoemaker.
Later on, its descendants started manufacturing flexible footbed insoles. In 1902, Konrad Birkenstock first developed the contoured arch support, which gained the approval of physicians and podiatrists.
With a strong reputation going back almost 250 years, the brand has expanded over the horizon at a constant pace. In the recent years, Birkenstock has entered the high fashion industry, gaining major collaborations with luxury labels like Chanel and Hermès.
As the future regarding Birkenstock’s IPO remains uncertain, the brand continues to revitalise its goals in building iconic footwear for its customers.
