Bernard Arnault, boss of billionaire LVMH, takes Birkenstock stake

Birkenstock, the maker of comfy but decidedly old-fashioned sandals, goes to bed with the king of luxury

Birkenstock said on Friday it would sell a controlling stake in its business to L Catteron, a private equity firm backed by LVMH, owner of high-end fashion brands like Louis Vuitton and Christian Dior.

French billionaire and LVMH boss Bernard Arnault is also participating in the operation, as is his family investment fund Financière Agache. Terms of the sale were not disclosed, but it would value the family-owned German shoe business at $ 4.85 billion.

While the clunky sandal maker may not seem like an obvious solution for LVMH, the investment comes as the luxury goods maker sought to increase its appeal to young people.

Moet owner Hennessy said this week that he has taken a 50% stake in Jay Z’s Armand de Brignac champagne brand.

And while her 2019 deal with Rihanna to design fashion for Fenty on hold “pending better terms,” ​​L Catterton took a stake in the pop singer’s lingerie line.

Birkenstock has a huge number of subscribers which has only grown in the past year, during which it generated record sales, the company said.

The deal aims to help Birkenstock expand into China and India as well as expand its e-commerce business, the company said in a statement.

Relatives of the founding family, brothers Alex and Christian Birkenstock, will remain with the company with the management of Birkenstock, the company said.

“Birkenstock was founded almost 250 years ago and has grown into one of the few iconic brands in the footwear industry. We really appreciate brands with this long heritage, ”Arnault said in a statement.

Birkenstock “is a brand that defines a category and is the classic and iconic brand,” Triangle Capital partner Richard Kestenbaum told The Post. “It must appeal to LVMH and the way they view brands, even if it is not strictly luxury as it is generally defined.”