Birkenstock, the maker of comfortable but decidedly fashionable sandals, is jumping on the bed with the king of luxury goods
Birkenstock said on Friday that it would sell a majority stake in its business to El Catern, the owner of high-end fashion brands such as El Vatton and Christian Dior, a private equity firm backed by LVMH.
French billionaire and LVMH boss Bernard Arnault is also taking part in the deal, as does his family’s investment fund Financia. Terms of the sale were not disclosed, but it values the German family-owned footwear business at $ 4.85 billion.
Although the makers of clunky sandals may not seem an obvious fit for LVMH, the investment comes as the luxe goods manufacturer is looking to increase its appeal among young people.
This week the owner of Moët Hennessy said it had formed a 50 percent stake in Jay Z’s Armand de Brignac Champagne brand.
And while its 2019 deal “better position” for Fent on Hold to fashion with Rihanna, El Catterton has taken a stake in the Pop Singer’s lingerie line.
The company said Birkenstock has been built in the past year, with record sales in it.
The company said in a statement that the deal is aimed at helping Birkenstock expand as well as expand its e-commerce business in China and India.
The founding family, relatives of brothers Alex and Christian Birkenstock, will remain with the company Birkenstock Management.
“Birkenstock was founded about 250 years ago and has become one of the few iconic brands in the footwear industry. “We really appreciate brands with this long heritage,” Arnault said in a statement.
Richard Birkenstock, a partner at Triangle Capital, said “Birkenstock” is a brand that defines a category and is a classic, iconic brand for it. “That LVMH is being appealed to and the way they think about brands is not even strictly luxury as is usually defined.”
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