LVMH Mogul Offloads Additional Billion-Dollar Birkenstock Stake Amidst Corporate Shake-Up
Billion-dollar Stake in Birkenstock Sold by L Catterton
In a recent development, financial investor L Catterton has announced the sale of a substantial stake worth over $1 billion in sandal manufacturer Birkenstock. This sale, reported by Handelsblatt, involves approximately 15.7 million shares priced at $52.50 each in a public offering.
The offering, managed by underwriters including Goldman Sachs, JP Morgan, and Bank of America, resulted in a 3.3% downward adjustment from the last stock market price. Notably, Birkenstock will simultaneously buy back 20 million shares worth $200 million to enhance long-term shareholder value.
The sale will decrease L Catterton's ownership stake in Birkenstock from nearly 72% to around 62.6%. If the investor were to divest its entire stake, it would secure a profit of nearly $2.8 billion (around €2.4 billion).
Descended from the wealth management arm of French billionaire Bernard Arnault and the CEO of luxury conglomerate LVMH, L Catterton had acquired the Birkenstock family's majority stake for $4.3 billion (approximately €3.8 billion) in 2021. Previously, L Catterton had raised nearly $989 million (approximately €872 million) in the IPO and subsequently sold shares worth $756 million (approximately €666 million) in June 2024.
Despite the sale, L Catterton retains majority control over Birkenstock, allowing for a strategic capital move that maintains liquidity for the investor while ensuring Birkenstock's financial resilience and long-term growth prospects. The company is currently valued at around $10 billion.
EF (Sources: 1, 3, 4, 5)
Businesses often involve finance and investing, and the recent sale by L Catterton of a billion-dollar stake in Birkenstock is a prime example. L Catterton, a financial investor, had initially acquired Birkenstock, a sandal manufacturer, for over $4 billion in 2021, but has now sold a portion of its shares worth approximately $1 billion in a public offering, thereby reducing its ownership stake in the company.
