US private equity firm L Catterton will still hold the biggest slice of the Birkenstock pie.
German sandal maker Birkenstock has announced that 14 million of its ordinary shares are to be sold in a secondary offering by an entity affiliated with its largest backer.
In the offer, set to close on 28 June this year, shares will be sold at $54 (€50) a piece – Birkenstock confirmed on Wednesday.
L Catterton, a US private equity firm supported by French billionaire Bernard Arnault and luxury goods giant LVMH, is seeking to reduce its stake in Birkenstock. Its ownership will fall from 81.1% to 73.2%.
Hopes for a strong demand
The sale is expected to raise $756 million (€707 million), although none of the proceeds will go to the sandal maker itself, which is not selling any shares in the offering.
If demand is strong, underwriters managing the deal have also been granted an option to purchase just over two million more ordinary shares. This is in addition to the initial 14 million.
L Catterton’s move to offload stock comes despite positive forecasts for Birkenstock.
At the end of May, the sandal maker said it expected adjusted earnings for 2024 to reach as much as €545 million, up from a prior max of €530 million.
Hopes for improved revenue for 2024
The company also raised its revenue guidance for the coming year, up to a possible high of €1.78 billion.
“Our results for the second quarter of 2024 once again demonstrate the strength of our business model and growing demand for our products,” said Oliver Reichert, CEO of Birkenstock, on the recent financial results.
“Given our engineered distribution model, demand continues to outpace supply in all segments, channels and categories.”
Birkenstock’s share price has been unsettled since the firm launched its IPO in October last year.
Shares dropped more than 12% in their market debut on the New York Stock Exchange.
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