Birkenstock has agreed to sell a majority stake to LVMH-backed private equity firm L Catterton, it said on Friday, in a deal that brings the maker of comfy, blocky sandals in the orbit of the French luxury powerhouse. The family-owned German company did not disclose financial details of a deal it said would help it to grow in China and India as well as expand its online business.

Sources close to the matter said the transaction values the company at about 4 billion euros ($4.85 billion). Financiere Agache, the family office of French billionaire and LVMH boss Bernard Arnault, is also taking part in the purchase alongside L Catterton, the previous investments of which include Pepe Jeans, online retailer Everlane and workout gear brand Sweaty Betty.

“Birkenstock was founded nearly 250 years ago and has grown to become one of the few iconic brands in the footwear industry. We truly appreciate brands with this long heritage,” Arnault said in a statement. Birkenstock, which traces its roots to 1774 and sells sandals in 100 countries, said it had a “record year” in 2020 despite the COVID-19 pandemic and is expanding production capacity in Germany. The company, which has yet to publish 2020 results, had revenue of 721.5 million euros in the year to Sept 30, 2019.

Read more/Source: Reuters