From Medical Footwear to the Fashion Throne: German Birkenstock Heads towards the American Markets with a Value of 8 Billion Dollars
The renowned German sandal manufacturer, Birkenstock, is preparing for a significant step towards entering the American stock market, as they plan for an initial public offering (IPO) expected in the coming September. The company’s valuation at that time is projected to exceed 8 billion dollars.
According to a report from Bloomberg News, “El Caterton,” the private equity firm linked to the French luxury group “LVMH,” is seriously considering listing Birkenstock in the United States.
Discussions are still ongoing regarding the details of the initial public offering (IPO) of the well-known company that manufactures sandals with wide straps and soles made of cork and latex. No final decisions have been made yet regarding the size of the offering or the timing.
Birkenstock and El Cateron companies declined to comment on these plans when contacted by Agence France-Presse, and the same plans were also disclosed in the Financial Times newspaper.
This much-anticipated advertisement comes after the company received a positive boost from Hollywood when actress Margot Robbie appeared in the lead role in the movie “Barbie,” wearing pink Birkenstock sandals.
Birkenstock Company was established in 1774 to manufacture medical shoes, and since then, its development has never ceased. Conrad Birkenstock designed the first flexible insole that adapts to the shape of the foot.
Sandals became popular in the 1960s when Americans brought them from Germany. They were particularly known among activists and hippies, who loved their extreme comfort and considered them a symbol against conventional fashion and clothing.
However, Birkenstock has now become a favorite among many stars and celebrities, and it has become a brand that collaborates with major global companies.
In 2021, L Catterton and the Bernhard Arnault Family Fund joined as major stakeholders in Birkenstock, a company headquartered in the city of Lintz am Rhein in western Germany.
Experts estimate that the value of the deal was approximately 4 billion euros, and two members of the Birkenstock family still hold a minority stake in the company.
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