Birkenstock owner considers September $8bn IPO

L Catterton, the private equity owner of German footwear Birkenstock, is considering an initial public offering of the company that could take place as soon as September, according to The Financial Times’ sources.

According to sources, the company could be valued at over £6.2 billion ($8 billion). The owners, which purchased a majority stake in Birkenstock in 2021 backed by LVMH, could receive a bumper return.

L Catterton was formed in 2016 when LVMH and Bernard Arnault’s family holding company merged with US private equity firm Catterton. Since then, the firm has rapidly expanded and now manages around £23 billion ($30 billion) in assets.

The listing would see L Catterton, which also recently invested in Ganni, complete the second listing of one of its portfolio companies in a matter of months. This is particularly impressive in today's climate when many private equity firms are struggling for a payday. Goldman Sachs and JPMorgan are reportedly advising on the suspected listing. Reports of the potential IPO began to circulate last month.

L Catterton bought a majority stake in the historic brand Birkenstock, which dates back to 1774, for £3.4 billion (€4 billion). The Birkenstock family is still involved in the brand and brothers Christian and Alex Birkenstock still hold shares. The brothers were believed to have netted around £1.3bn each after the sale to L Catterton and could be in for another big payday if the brand floats, though it is not known how large their shareholdings are.

Johann Adam Birkenstock founded his business in Frankfurt in 1774 but it was more than a century later that his descendant Konrad Birkenstock began manufacturing and selling flexible footbed insoles.

Pioneer Konrad went on to develop the first "contoured arch support" in 1902 and the shoes went on to gain the approval of physicians and podiatrists. In the 1960s, Birkenstock expanded internationally moving into the US and by the 1970s it was a global name.

Their reputation as a fashionable option took off in the 1990s when they became synonymous with the grunge movement. More recently the brand has entered the high fashion space with collaborations with the likes of Dior and Manolo Blahnik to name a few.