The sale of the famous worldwide brand with a 250-year history is estimated at $4.8 billion.
The German shoe brand, known for its leather sandals models, called Birkenstock, has been making shoes since 1774. The company has remained a family business for most of its history. Now, it is being reported that talks are underway to buy the brand.
A potential buyer is European private equity firm CVC Capital Partners, which already owns such well-known brands as Swiss watch brand Breitling and German beauty and grooming retailer Douglas. It has also been reported that investment company Permira, the owner of the popular shoe brand Dr. Martens, is interested in buying Birkenstock. Initially, the brand tried to get other major market players and well-known shoe manufacturers interested in buying it but eventually turned to investment firms.
The estimated amount of the deal is about $4.8 billion. The companies are currently negotiating, and there is no word on the status of the agreement. There is also the possibility that the brand could end up finding another buyer.
During the pandemic, comfort shoe brands like Birkenstock experienced a sales surge. While the footwear market as a whole has been negatively impacted by the recession and has seen a significant drop in sales, brands like Birkenstock, UGG, and Crocs, on the other hand, have experienced a rebound. According to an NRD Group report, Shoppers want to dress comfortably. According to an NRD Group report, Shoppers wish to dress comfortably, and even after the pandemic is over, about 70% of them will still prefer not office shoes but more comfortable shoes like Birkenstock.
Photo credit: depositphotos.com.
22 JANUARY 2021, Germany