Birkenstock Orthopaedie GmbH & Co, the German firm behind the iconic sandals worn by hippies and preppies alike, is in talks to be taken over by CVC Capital Partners, people familiar with the matter said.
The private equity firm is in advanced negotiations with the family owners of the nearly 250-year-old brand, said the people, who asked not to be identified as they were discussing confidential information.
A deal could value the business at more than 4 billion euros (US$4.85 billion) including debt, the people said.
While Birkenstock launched its sandals in the 1960s, the brand’s roots stretch all the way back to 1774, when Johann Adam Birkenstock was working as a cordwainer in the German state of Hesse. That heritage has appealed to shoppers who gravitate toward products with a back story.
CVC controls high-profile brands such as Breitling SA, the Swiss watchmaker it took over in 2017 that is known for the aviation-themed timepieces worn by actor John Travolta. The buyout firm also owns German beauty chain Douglas GmbH, which has struggled with its debt load amid COVID-19 and online competition.
No final decisions have been made, and there is no certainty that the discussions will lead to an agreement, the people said.
A representative for CVC declined to comment, while a spokesperson for Birkenstock could not immediately comment.
Birkenstock shoes have been sold in the US since 1966, after a woman named Margot Fraser discovered them on a German vacation and began importing the product. Popular with bohemians and fashionistas, the sandals enjoyed a faddish bump in the 1990s and 2000s when celebrities including Kate Moss and Heidi Klum began strolling around in them.
Since 2013, Birkenstock has been led by cochief executive officers Markus Bensberg and Oliver Reichert.
Birkenstock sold 23.8 million pairs of shoes in the financial year through September 2019, which helped sales rise 11 percent to 721.5 million euros.
Net income for the period rose 40 percent to 129 million euros, a filing said.
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