Birkenstock is a family-owned brand, but recent reports from Bloomberg indicate that the company is in talks with CVC Capital Partners, a private equity firm, to sell.

The Talks

Bloomberg reported that these are “advanced talks” that would involve CVC Capital Partners buying Birkenstock for $4.8 billion. This valuation includes some debt.

For those unfamiliar with CVC Capital Partners, the firm already owns Douglas, a German beauty retailer, and Breitling, a Swiss watch retailer.

Birkenstock’s Recent Growth

Birkenstock has been doing well in recent months. According to the NPD Group, Birkenstock and other brands like Crocs, Dr. Martens, and UGG that focus on comfort have had an advantage during the pandemic.

About five years ago, Birkenstock was in the headlines for no longer selling on Amazon. This decision was due to concerns about counterfeiting.

There was not a company-owned Birkenstock store in the United States until about three years ago. Opening the store was one step the company took to focus on regional growth. In recent years, Birkenstock has expanded its appeal. In the past, it was mostly associated with bohemian fashion. Recently, however, those interested in fashion have also been wearing them. Birkenstock encouraged this with a range of styles and finishes to expand its previously limited selection.

Some Quick Birkenstock History

Birkenstock is 250 years old, as Johann Adam Birkenstock began it as a cobbler in 1774. The iconic sandals that most people think of when they hear the brand name first launched during the 1960s. This was also when the brand started to take off in the United States.

Margot Fraser gets credit for bringing Birkenstocks to the United States. She reportedly discovered them while on vacation in Germany and started importing them for sale in 1966. The brand experienced another bump in U.S. sales during the 1990s and 2000s.

Currently, Birkenstock sells its products in about 90 countries. Its line includes beds, bags, and belts in addition to shoes and sandals.

Predictions for Birkenstock’s Future

Experts believe that Birkenstock will still be going strong for days to come. An NPD survey found that although many people will, of course, switch back to more formal footwear at the end of the pandemic, Birkenstocks will still have a place. This comes from 70% reporting that they plan to dress more casually than in pre-pandemic times.

This is good news for brands like Birkenstock that focus on more casual footwear and comfortable styles.

Sources:

https://www.retaildive.com/news/birkenstock-reportedly-in-talks-to-sell-to-private-equity/593583/

https://finance.yahoo.com/news/birkenstock-talks-5-billion-sale-185307348.html