The Limited Times

Now you can see non-English news...

Birkenstock: EU authority allows takeover by luxury investor

2021-04-24T01:54:45.996Z


Birkenstock sandals were once especially popular with environmentally conscious buyers. Now the German company is switching to an American-French group - and wants to expand internationally.


Enlarge image

Birkenstock store in Berlin

Photo: 

Sean Gallup / Getty Images

The European Commission has approved the takeover of the world-famous German sandal manufacturer Birkenstock by the French-American company L-Catterton.

"The project was examined as part of the simplified merger control procedure," said the authority.

Accordingly, the planned takeover does not raise any competition concerns.

Birkenstock, based in Linz am Rhein in Rhineland-Palatinate, described the partnership in February as the next logical step in order to continue to grow strongly in future markets such as China and India.

L-Catterton is a close partner of the French luxury group LVMH, which includes brands such as Louis Vuitton and Moët Hennessy.

In February there were reports of a takeover of 60 to 70 percent of the Birkenstock shares for four billion euros.

LVMH CEO Bernard Arnault has also invested his private assets in Birkenstock through the Financière Agache group.

The transaction has so far been subject to the approval of the relevant competition authorities.

Birkenstock has a turnover of 720 million euros

The entry by the luxury investor L Catterton also carries risks for the company, because the Birkenstock sandals are particularly popular with environmentally conscious buyers. The expansions of recent years, for example into the USA, have already scratched the image of the German company.

The history of Birkenstock goes back to the year 1774.

Today the family company is run in the sixth generation.

It employs more than 4,300 people worldwide and is active in more than 100 countries.

Birkenstock also operates 13 locations in Germany.

According to its own information, the company is economically stable.

In 2019, the company posted a turnover of around 720 million euros with a net profit of 130 million euros - and in the Corona year 2020, despite two-month factory closings, it generated revenues around the previous year's level.

hba / dpa

Source: spiegel

All business articles on 2021-04-24

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.