Birkenstock, the maker of comfortable but definitely fashionable sandals, jumps into bed with the king of luxury goods
Birkenstock said on Friday it would sell a majority stake in its business to L Catteron, a private equity firm backed by LVMH, the owner of high-end fashion brands such as Louis Vuitton and Christian Dior.
French billionaire and LVMH boss Bernard Arnault is also taking part in the deal, as is his family investment fund Financiere Agache. The terms of the sale were not disclosed, but the German shoe business allegedly valued $ 4.85 billion.
Although the manufacturer of clumsy sandals may not seem like a clear fit for LVMH, the investment comes because the luxury manufacturer of goods wanted to increase its appeal among young people.
The owner of Moet Hennessy said this week that he has captured a 50 percent stake in Armand de Brignac champagne brand Jay Z.
And while it set his 2019 deal with Rihanna to create fashion for Fenty in anticipation of pending better conditions, L Catterton has taken an interest in the pop singer’s lingerie range.
Birkenstock has a large number of buildings that have only grown over the past year, in which it is generating record sales, the company said.
The deal is aimed at helping Birkenstock expand into China and India, as well as expanding its e-commerce business, the company said in a statement.
Family members of the founding family, brothers Alex and Christian Birkenstock, will remain with the management of Birkenstock at the company, the company said.
“Birkenstock was founded almost 250 years ago and has become one of the few iconic brands in the shoe industry. We sincerely appreciate brands with this long heritage, ”Arnault said in a statement.
“Birkenstock ‘is a brand that defines a category and is the classic, iconic brand for it,’ Richard Kestenbaum, a partner at Triangle Capital, told The Post. “It should appeal to LVMH and the way they think about brands is not even strictly luxurious as is commonly described.”