Luxury Group LVMH-Affiliated Private Equity Acquires German Birkenstock

[Asia Economy Reporter Yujin Cho] French Louis Vuitton Moet Hennessy (LVMH) Group affiliate has acquired the German sandal brand Birkenstock.

According to Bloomberg on the 26th (local time), 'L Catterton,' established in 2016 as a joint venture between LVMH and a U.S. investment firm, along with Bernard Arnault, chairman of LVMH's family investment company 'Financiere Agache,' acquired Birkenstock.

The acquisition price was not disclosed, but sources reported that Birkenstock was valued at approximately 4 billion euros (about 5.4561 trillion KRW).

The U.S. economic media CNBC evaluated that this deal is expected to help expand Birkenstock's rapidly growing online business in China and India.

Arnault, the richest person in Europe, also participated in this deal. He said, "Birkenstock, founded about 250 years ago, has grown into one of the few iconic brands in the footwear industry," and added, "We will support Birkenstock to fully realize its growth potential."

Christian and Alex, descendants of the founder Johann Adam Birkenstock, stated, "The Birkenstock family needed a partner to share strategies and long-term vision to continue for the next 250 years, and we have found that partner."

While the majority of Birkenstock shares will be held by L Catterton and Financiere Agache, the Birkenstock brothers are expected to remain shareholders.

Founded in 1774, Birkenstock operates in 100 countries. Despite the economic downturn caused by COVID-19, it recorded a record sales of 721.5 million euros last year.

This content was produced with the assistance of AI translation services.