After almost 250 years of being family-owned, Birkenstock is reportedly considering a sale to private equity group CVC Capital Partners in a deal rumoured to be worth US$4.8 billion (AU$6.18 billion) โ including debt.
According to the Financial Times, Birkenstock has been exploring the possibility of a CVC acquisition for several months with the help of bankers from Goldman Sachs. Initially seeking interest from industry rivals like Permira and โone other private equity groupโ, it now appears as though CVC is the clear frontrunner.
FT also notes how inside sources have revealed CVCโs ambitions to โโฆ grow sales in new markets while capitalising on the brandโs loyal customer baseโ, due in great part to the fact its executives believe Birkenstockโs popularity is โless likely to fluctuate with fashionโ than the likes of Dr Martens (which rival firm Permira owns).
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Although the final deal is yet to be confirmed, this certainly wouldnโt be a bad decision from CVC. Filings indicate the Germany-based footwear company generated โฌ721.5 million (AU$1.13 billion) in revenues and โฌ129 million (AU$202.15 million) in net income in the year to September 2019; thatโs a 40% bump in net profit compared to the previous year. Birkenstock employs 3,800 people.
CVC currently retains notable interests in UnitedLex, the Formula One Group, as well as Swiss watchmaker Breitling.
