L Catterton, the private equity firm backed by French fashion house LVMH, is planning to launch an initial public offering (IPO) of iconic footwear brand Birkenstock as soon as September. The IPO may value Birkenstock at over $8 billion, with potential valuations going as high as $10 billion. The company's sales have recently been boosted by exposure in the blockbuster Barbie movie, where Margot Robbie's character wore a pair of pink Birkenstocks. Goldman Sachs Group Inc (NYSE:GS). and JPMorgan Chase (NYSE:JPM) & Co. are said to be working with L Catterton on the potential U.S. listing.
Founded nearly 250 years ago, Birkenstock has evolved into a high-fashion brand, partnering with luxury names like Dior, Manolo Blahnik, and Valentino. It has been selling its iconic sandals in the U.S. since 1966. In 2020, the company experienced a revenue rise of 29% to about €1.2 billion ($1.3 billion) and has been investing heavily in expanding its production sites in Germany.
L Catterton and billionaire Bernard Arnault's family investment company acquired a majority stake in Birkenstock more than two years ago, valuing it at approximately €4 billion. The brand's impending IPO appears to align with a resurgence in the U.S. IPO market, following a period of 18 months of stagnation, a trend underscored by the recent successful debut of restaurant chain Cava Group Inc.
While the IPO's size and timing are yet to be finalized, the anticipated listing of Birkenstock reflects a significant development in the footwear industry and could mark another notable entry into the U.S. stock market. The company's global reputation and recent revenue growth may position it well for a successful public debut.
This article was originally published on Quiver Quantitative