European footwear company Birkenstock is in discussions for a sale to CVC Capital Partners, which is far along in talks with the owners of the brand that has been around for some 250 years, Bloomberg reported, citing unnamed sources.
Birkenstock could be valued at over 4 billion euros (approximately $4.8 billion) through a deal with the inclusion of debt, unnamed sources noted in the report.
Currently, CVC has control of well-known brands such as Swiss watch manufacturer Breitling SA. Moreover, the company owns European beauty company Douglas GmbH that has grappled with its debt load during the pandemic.
Birkenstock’s history goes back to the 1700s. At that time, Johann Adam Birkenstock’s vocation was a cobbler in Hesse, Germany. The company rolled out its sandals a few hundred years later — in the 1960s.
The company’s shoes have been sold in the United States as of the 1960s once Margot Fraser came across them on a trip to Europe and started bringing the product into the country.
The sandals experienced a “faddish bump” in the 2000s and 1990s. At that time, famous individuals such as Heidi Klum and Kate Moss started walking around in them.
Co-CEOs Oliver Reichert and Markus Bensberg have headed up Birkenstock as of 2013. The firm has its merchandise for sale in approximately 90 nations.
The report comes as items that are focused on comfort have been attractive to consumers amid the pandemic. American footwear firm Crocs Inc. is anticipated to report blockbuster revenue for 2020 after the coronavirus bolstered sales of its signature clogs.
Moreover, boot manufacturer Dr. Martens is mulling an equity value of 4 billion pounds (approximately $5.5 billion) or greater in an initial public offering (IPO) per a recent Bloomberg News report.
In separate news, a report surfaced in September that New Zealand-America shoe firm Allbirds had closed on a $100 million Series E. The funding had been headed up by California investment company Franklin Templeton.
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