Birkenstock negotiates takeover offer of 4 billion euros

Birkenstock is in advanced takeover negotiations with investment group CVC Capital. For 4 billion euros, the 250-year-old sandal brand may become a sister of luxury watch brand Breitling.

23.8 million pairs of shoes

Comfortable clothing is at an all-time high owing to the coronavirus, and Birkenstock is also benefiting from this. While Crocs recorded a record year in 2020 and Dr. Martens decided to go public, the German sandal brand has attracted private equity player CVC Capital’s interest. Both parties would be in well-advanced talks about a takeover, reports Bloomberg.

CVC is willing to put more than 4 billion euros on the table for Birkenstock, including debts. However, there is no certainty yet about the deal going through. The talks have not yet been confirmed formally by the parties involved. Birkenstock sold 23.8 million pairs of shoes in the financial year ending September 2019, accounting for an 11 per cent increase in sales to 721.5 million euros. Net profit then rose by 40 per cent to 129 million euros.

Fund of 21.3 billion euros

If this takeover were to happen, Birkenstock would become a sister company of the luxury watch brand Breitling and the German drugstore chain Douglas, amongst others. Since the summer, CVC Capital Partners is looking for takeovers after it set up a new fund worth 21.3 billion euros, with which it wants to invest in companies in Europe and the US.

Although Birkenstock’s iconic sandals saw the light of day in the 1960s, the brand’s roots go back to 1774, when shoemaker Johann Adam Birkenstock of Hessen, Germany started developing his craft. Since 2013, Birkenstock is led by Co-Chief Executive Officers Markus Bensberg and Oliver Reichert. The company sells its goods, including belts and bags, in around 90 countries.