L Catterton, the private equity firm backed by luxury French fashion house LVMH, is nearing an agreement to acquire iconic German sandal maker Birkenstock, people with knowledge of the matter said. The investment firm and the family behind Birkenstock could announce a deal in the next week, the people said, asking not to be identified because the information is private. The transaction could value Birkenstock at about 4 billion euros ($4.9 billion), they said.

L Catterton has been competing with buyout firm CVC Capital Partners, which was close to sealing a deal earlier this year, the people said. In the end, the family owners of Birkenstock preferred L Catterton’s track record with family-backed consumer brands as well as its ability to expand in Asia, Bloomberg News reported this month.

L Catterton was created in 2016 by combining U.S. investment firm Catterton with the private equity operations of LVMH and its billionaire founder Bernard Arnault. The firm now manages more than $23 billion of assets, according to its website. Its investments have included denim producer Pepe Jeans, workout gear brand Sweaty Betty, cosmetics firm Bliss and online retailer Everlane.


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Source: BNN Bloomberg

By Eyk Henning, Aaron Kirchfeld and Crystal Tse