Legendary sandal maker Birkenstock is embarking on a new chapter, going public on the New York Stock Exchange and garnering a multi-billion dollar valuation.
Key Details
- Birkenstock priced its IPO at $46 per share, putting its current valuation around $8.6 billion.
- LVMH-backed private equity firm L Catterton acquired the company just last year for $4.3 billion.
- Birkenstock saw revenue grow 21% to $1.19 billion in the first nine months of 2022.
- The IPO raised $1.48 billion by selling 32.3 million shares.
- Birkenstock joins other major 2022 IPOs like Instacart, Klaviyo, and Arm Holdings in entering the public markets.
Why It’s News
After 250 years as a private company, Birkenstock is taking the momentous step of going public. The move underscores the surging interest in the iconic German sandal maker.
Just last year, Birkenstock was acquired by L Catterton, the private equity firm backed by French luxury powerhouse LVMH. The deal valued Birkenstock at $4.3 billion. A little over a year later, Birkenstock’s value has nearly doubled with its IPO pricing the company around $8.6 billion.
Birkenstock saw revenue jump 21% in the first nine months of 2022, showcasing strong and steady demand for its sandals despite economic uncertainty. The brand has expanded its loyal following by inking partnerships with esteemed luxury houses like Dior and Manolo Blahnik.
Joining the public markets allows Birkenstock access to new capital to fuel its growth plans. However, it also exposes the company to further scrutiny from shareholders and the whims of Wall Street. Birkenstock faces a cloudy economic picture as recession concerns swirl. Its first days as a publicly traded company will show if the brand can maintain momentum.