March 01: L Catterton is nearing an agreement to acquire the German footwear brand Birkenstock as the deal might get final by this week. This information was bestowed by the people aware of the development.
The people also claimed that the investment firm and the family who is behind the German brand might announce the deal this week. However, the identity of the informers cannot be revealed since the information is private.
They also said that the transaction could bring a revenue value to Birkenstock of about 4 billion euros. At the same time, the representatives for both Birkenstock and L Catterton denied claiming the viral information.
Also read: German brand Birkenstock launches a first mono-brand store in Bengaluru
The informers also said that since the conversations are advanced, the agreement might get delayed or even fall apart. L Catterton is a private equity firm that is backed by luxury French fashion house LVMH.
The people aware of the matter also claimed that L Catterton has been competing with the buyout firm CVC Capital Partners in acquiring the German brand as the former were close to sealing the deal earlier this year, however, failing in the process when Birkenstock chose L Catterton’s exceptional track record along with its ability to expansion in Asia, as claimed in Bloomberg News reports of this month.
Birkenstock has been planning its expansion in India for quite a long time and has already launched its brand stores and mono-brand stores in several Indian states like Delhi, Chennai, Hyderabad, Mumbai, and Bengaluru.