earlier in february, permira was tipped as one of

Birkenstock Deal Adds Heat to Comfy Shoe Sector
On Friday, private equity giant L Catterton and family holding Financire Agache, investment vehicles backed by LVMH Mot Hennessy Louis Vuitton and aaa replica designer handbags luxury titan Bernard Arnault and his family respectively, acquired a majority stake in Birkenstock, with plans to expand in Asia, open more stores and ramp up e commerce.
The deal followed a bumper initial replica louis vuitton bags public offering last month for Dr. Martens, and amid a sale process for Reebok, currently owned by Adidas.
"Private equity is interested in casual footwear," said Luca Solca, luxury goods analyst at Bernstein, also citing the recent successful placement of Golden Goose. "COVID 19 has boosted a process toward casual and comfortable that was already under way, both in apparel and in footwear."
Asked if there were other brands on the horizon that could pique investor interest, Solca said: "There are many footwear brands popping up here and there. Think about Allbirds or Autry, just to name two."
Pierre Mallevays, co head of merchant banking at Stanhope Capital Group, said "strong brands are more powerful than ever" in the digital age and that's what's driving transactions.
"Money has never been so plentiful, but investors fake designer bags are generally less tolerant of risk, so successful companies with strong brands are all the more attractive," he said. Earlier in February, Permira was tipped as one of Birkenstock's suitors, and that was not a surprise.
In late January, Permira took Dr. Martens public on the London Stock Exchange at a top of the range price of 3.70 pounds a share. The offer was oversubscribed eight times before it landed on the board, and the shares have been trading at around 5 pounds since then.
Permira purchased Dr. Martens in 2014 for 300 million pounds, and more than tripled the revenues to 672.2 million pounds in fiscal 2019 20. It raised 1.3 billion pounds from the float, and retained a 42.9 percent stake in Docs, convinced the British bootmaker still has miles of growth ahead of it.
Last year Permira added Italian brand Golden Goose to its stable. While its sneakers may have a much higher price tag than Dr. Martens, Permira clearly sees potential in both as women cast off their heels and pivot their spend to cool flat shoes that can be worn every day.
While financial terms were not disclosed on Friday, 250 year old Birkenstock is believed to be valued at 4 billion euros. The company reported revenues of 720 million euros in 2019 and hinted that it powered ahead last year in spite of the pandemic.
The two remaining relatives of the founder of the company, Christian and Alex Birkenstock, said they entered "this strategic partnership after carefully examining all options."
They said the sale would "further strong growth in future growth markets such replica designer handbags as China and India" and that the new partners would invest in German sites and expand production, logistics and sales operations. "At the same time the company plans to invest in the further development of its direct replica louis vuitton to consumer business replica designer handbags and the expansion of its e commerce platforms," Birkenstock said in a statement.
Although Birkenstocks' new connection to Arnault's LVMH, is indirect that is, via L Catterton there is potential for greater collaboration between the luxury giant and the German footwear brand.
cheap louis vuitton bags from china uk A leader in the luxury market, LVMH has replica louis vuitton handbags a market capitalization of 266 billion euros. Its global presence and stable of brands and companies connect Birkenstock to various possibilities, everything from more of the savvy designer collaborations with the likes of Valentino and Proenza Schouler that have brought the company so cheap louis vuitton bags from china uk much attention over recent years, to a slot in the duty free sector, thanks to LVMH's DFS subsidiary.
Birkenstock has also dabbled in other lifestyle products, including a line of signature beds and an array of natural cosmetics.
Market watchers have suggested that Birkenstock may develop the same way German luggage brand Rimowa has since LVMH bought a majority stake from that family owned brand's heirs for 640 million euros in 2016. 1:1 replica handbags Since then, LVMH has pushed Rimowa toward more designer collaborations, including with streetwear stalwarts like Supreme and Off White, as well as with LVMH stablemate Dior. LVMH also opened more Rimowa stores, and diversified the product range with new colors and sizes, as well as soft accessories and eyewear. investment firm Catterton and Arnault's LVMH and Groupe Arnault, formed in 2016. It describes itself as "the largest, diversified consumer dedicated private equity firm in the world" and has more than $22 billion under management, with stakes in a wide variety of firms, including Everlane, Ba Intercos Group, Sweaty Betty and more. L Catterton recently cheap louis vuitton bags from china snapped up Jott, a French outerwear firm known for its lightweight puffers.
The Birkenstock brothers, who will stay on with the company and hold a minority share, praised their new business partners for "a deep understanding of the details of a manufacturing business that is all about quality and a respect for brands with a long heritage like ours."
"We truly appreciate brands with this long heritage," Arnault said in a statement. "Together we will provide support to the business so it can fully realize its significant growth potential."
In Friday's statement, Birkenstock said it is "performing better than ever before in its 250 year history and reported "another record year" despite the coronavirus pandemic.
Certainly Birkenstock, which produces around 24 million pairs of shoes a year, has been one of the winners of lockdowns everywhere. Between April and June 2020, searches for the brand's distinctive sandals rose 225 percent, according to online fashion search engine Lyst.

A Birkenstock spokesperson noted that the brand has grown steadily over the last decade: "Sure, the lockdown and home office have given us a boost. But Birkenstock was beloved Designer Louis Vuitton Replica Handbags before the pandemic, and we believe we will be after the pandemic, too.". 


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