The maker of comfortable but decidedly old-fashioned sandals, Birkenstock jumps into bed with the king of luxury goods
Birkenstock said Friday it will sell a majority stake in its company to L Catteron, a private equity firm backed by LVMH, which owns high-end fashion brands such as Louis Vuitton and Christian Dior.
French billionaire and LVMH boss Bernard Arnault is also participating in the deal, as is his family investment fund Financiere Agache. The terms of sale have not been disclosed, but it reportedly estimates the German family shoe company at $ 4.85 billion.
While the maker of clunky sandals may not be obvious at LVMH, the investment comes because the luxury goods maker wants to increase its appeal among young people.
Moet Hennessy owner said this week that it had acquired a 50 percent stake in Jay Z’s champagne brand Armand de Brignac.
And while it has put its 2019 deal with Rihanna to create fashion for Fenty on hold “pending better terms,” L Catterton has taken a stake in the pop singer’s lingerie line.
Birkenstock has a huge built-in following that has only grown over the past year, generating record sales, the company said.
The deal aims to help Birkenstock expand into China and India and expand its e-commerce business, the company said in a statement.
Relatives of the founding family, brothers Alex and Christian Birkenstock, will remain with the company along with Birkenstock management, the company said.
“Birkenstock was founded almost 250 years ago and has grown into one of the few iconic brands in the shoe industry. We really 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. “That should appeal to LVMH and the way they think about brands, even if it’s not strictly luxury as it’s generally defined.”