Birkenstock Files For $8 Billion IPO

Birkenstock, the renowned German footwear company, took a significant step towards going public on Tuesday. However, the specifics regarding its share price and the terms of the share sale remain undisclosed. The company’s shares will be listed on the New York Stock Exchange under the symbol “BIRK,” as stated in its official filing.

The anticipated valuation of this initial public offering (IPO) could exceed $8 billion, according to reports from Bloomberg. Notably, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley have been listed as joint underwriters for the IPO. Birkenstock has demonstrated robust financial performance, reporting approximately $1.3 billion in revenue for the year 2022, which reflects an impressive 18% growth in revenue from 2018 to 2022.

Founded in 1774, Birkenstock experienced a change in ownership around a decade ago when the family heirs stepped aside. In 2021, L Catterton, a private equity firm backed by billionaire Bernard Arnault’s LVMH, acquired a majority stake in Birkenstock in a deal that valued the company at approximately $4.3 billion. It’s worth noting that LVMH, the parent company of L Catterton, boasts ownership of 75 prominent fashion and cosmetics brands and became the first European company to achieve a $500 billion valuation.

Bernard Arnault, with an estimated net worth of $195.2 billion, currently ranks as the second-wealthiest individual globally, trailing only Tesla CEO Elon Musk.

In its filing, Birkenstock highlighted the vast and fragmented nature of the global footwear market. Citing Euromonitor, the company pointed out that the sector was expected to generate approximately $365 billion in retail sales the previous year.

Birkenstock Holding officially filed for an IPO with the U.S. Securities and Exchange Commission on Tuesday. The company intends to list its shares on the New York Stock Exchange under the ticker “BIRK.” However, specific details about the number of shares to be listed and the expected price range remain undisclosed. Notably, entities affiliated with L Catterton, the U.S. private-equity firm, are the selling shareholders.

The Wall Street Journal had previously reported L Catterton’s exploration of an IPO for Birkenstock, speculating a valuation of over $7 billion. In July, L Catterton saw significant returns on its investment in various companies following their successful IPOs, including Oddity Tech, Cava Group, and Savers Value Village.

In its regulatory filing, Birkenstock reported €1.24 billion (approximately $1.33 billion) in revenue for fiscal 2022, which concluded on September 30, along with €187.1 million in profit. Additionally, for the six months ending on March 31, the company generated revenue of €644.2 million, up from €542.6 million in the previous year’s corresponding period, and a profit of €40.21 million, compared to €73.5 million a year ago. The company has not yet disclosed its intentions for the use of the proceeds from the IPO.

Birkenstock, a company founded by Johann Adam Birkenstock in 1774, has gained notoriety for its iconic strapped brown suede sandals, favored by tech innovators and fashion enthusiasts alike. In fact, a pair of Birkenstocks worn by Steve Jobs fetched a remarkable $218,000 at auction in November. The brand’s slip-on sandals have seamlessly complemented designer looks for decades, with its two-strap Arizona sandals retailing for approximately $140 on its website.

Information for this briefing was found via Forbes, The Wall Street Journal, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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