To achieve this, Birkenstock intends to sell a minimum of 32 million shares in its initial public offering (IPO), with each share priced between $44 and $49. This move aims to generate at least $1.58 billion in funds, primarily earmarked for reducing the company's existing debt, as stated in its IPO filings.
Thomas Hayes, Chairman of hedge fund Great Hill Capital, expects that Birkenstock will utilize some of the funds raised through the IPO to further expand its business. The company's strong market position in the United States positions it favorably to potentially pass on price hikes to customers.
Currently, L Catterton, a private equity firm backed by luxury goods conglomerate LVMH, owns the entirety of Birkenstock. After the IPO, L Catterton will maintain approximately 83% ownership of the company, with Alexandre Arnault, son of billionaire LVMH Chairman Bernard Arnault, set to join Birkenstock's board. Additionally, investment firms Durable Capital Partners LP and Norges Bank Investment Management have shown interest in acquiring shares valued at $300 million.
With a rich history spanning nearly 250 years, Birkenstock is renowned for pioneering a contoured insole design that enhances comfort. The brand gained popularity in the 1970s and has since evolved into a high-fashion brand, collaborating with luxury names like Dior, Manolo Blahnik, and Valentino. Numerous fashion labels, including Celine and Givenchy, have also introduced their interpretations of Birkenstock sandals.
In terms of its customer base, Birkenstock caters to a diverse audience. More than half, or 54%, of the company's customers reside in the Americas, while Europe accounts for 36%. Although women make up the majority at 72%, Birkenstock's appeal spans multiple generations. Millennials constitute the largest share at 31% of sales, followed by baby boomers at 30%, Gen X at 27%, and Gen Z at 12%.