Lock, stock and two smoking sandals – not your average stock

One of the trendiest footwear companies in the world has locked in a fully diluted IPO valuation of US$10 billion, and will aim to raise almost US$1.6 billion as a part of a listing on the New York Stock Exchange next week.

One of the trendiest footwear companies in the world has locked in a fully diluted IPO valuation of US$10 billion, and will aim to raise almost US$1.6 billion as a part of a listing on the New York Stock Exchange next week.

German premium footwear maker Birkenstock recently revealed their revenue jumped a 21% in the nine months ended June 30 2023, recording US$1.2 billion of sales during this period. Adjusted EBITDA also grew 16% to approximately US$414 million, and represents a 34.5% EBITDA margin.

Once a family business, Birkenstock, which traces its roots back to 1774 Germany, has been backed by the private equity group L Catterton for quite a few years. After completing their acquisition of a majority share in the company at a ~US$4.35 billion valuation in April 2021, which they describe as a lifestyle brand that represents the epitome of comfort while walking and standing, L Catterton explored numerous opportunities for an exit.

This included only a few months ago in July, where it appeared a listing was on the cards at a US$6 billion valuation, with JP Morgan and Goldman Sachs on the ticket. There were also talks of a special purpose acquisition company (SPAC) in 2021 just a couple of months after the acquisition.

The family office of French billionaire and LVMH boss Bernard Arnault also invested alongside the private equity group, and is supporting the IPO. His investment vehicle has indicated interest in purchasing US$325 million of shares in the offering, while Durable Capital Partners LP and Norges Bank Investment Management have also indicated collective interest around the US$300 million mark.

Goldman Sachs, JP Morgan and Morgan Stanley are all joint lead managers and underwriters of the listing, which is another step towards breaking the long held IPO drought in global financial markets. Strong performance would continue a trend started in recent weeks by the ARM and Instacart IPO’s.

Past performance is not a reliable indicator of future performance.

 

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