Birkenstock has sold a majority stake to L Catterton, a private equity firm backed by Bernard Arnault‘s luxury conglomerate LVMH. According to a new report by CNN, brothers Christian and Alex Birkenstock, members of the footwear brand’s founding family, will retain a minority stake.
Arnault has also enlisted Financière Agache, a holding company controlled by the Arnault Group, to fund Birkenstock. “In L Catterton and Financière Agache we have found not just shareholders, but also partners for achieving our global growth ambitions,” Birkenstock CEO Oliver Reichert told CNN. Though Reichert declined to reveal specifics of the deal, the Financial Times reports the company’s valuation at $4.8 billion USD. “Birkenstock was founded nearly 250 years ago and has grown to become one the few iconic brands in the footwear industry,” Arnault offered in a statement.
Indeed, Birkenstock has seen a surge in sales during the pandemic, thanks to its slip-on silhouettes ideal for wear both indoors and out. A spate of designer collaborations with the likes of Proenza Schouler, KITH and Stussy has also allowed the footwear brand to claim a spot in the luxury fashion and streetwear space. In July 2020, global fashion platform Lyst reported that Birkenstock’s classic Arizona sandal was the most sought-after women’s product of Q2.