L Catterton strikes $4.8B deal for Birkenstock
March 1, 2021
L Catterton, a private equity firm that backs several popular consumer brands, has agreed to acquire sandal maker Birkenstock. The deal values the German company at roughly €4 billion (about $4.8 billion), Reuters reported.
- Financière Agache, a family office run by LVMH CEO Bernard Arnault, will also invest in the deal. Arnault and LVMH—the parent of Louis Vuitton and dozens of other luxury brands—helped form L Catterton back in 2016.
- Founded in 1774, Birkenstock has gained popularity in recent years from younger customers embracing the sandal's bulky look. The company posted €721.5 million of revenue in the fiscal year through September 2019.
- UK-based private equity firms CVC Capital Partners and Permira had showed interest in acquiring the business, according to prior reports. But L Catterton won out over CVC because of its experience with family-owned consumer brands and its track record in Asia, Bloomberg reported.