On October 10, German footwear group Birkenstock shared that it had priced its US initial public offering (IPO) at $46 per share, aligning with the midpoint of its indicated price range. This IPO generated approximately $1.48 billion through the sale of 32.3 million shares, establishing the company's valuation at roughly $9.3 billion on a fully diluted basis.
The debut on the public market is anticipated to raise an estimated $1.5 billion. Of these funds, one-third is designated for debt repayment by the company, while the remaining two-thirds will flow to L Catterton, its private equity proprietor.
L Catterton, which is affiliated with the esteemed French luxury fashion house LVMH, acquired a majority stake in Birkenstock for €4 billion in 2021. This marked Birkenstock's inaugural venture into private equity financing.
The origins of Birkenstock trace back to the year 1774 when it was established in the German village of Langen-Bergheim by Johannes Birkenstock and his younger brother Johann Adam Birkenstock, both accomplished shoemakers. Over the course of six generations, the Birkenstock family managed and steered the business since its inception.