Birkenstock brothers, owner of German shoe brand, are worth $3.4 billion: Report
Bloomberg Billionaires Index on Wednesday showed that brothers Alex and Christian Birkenstock are now worth $3.4 billion. The German footwear brand's shares slumped around 12% in the worst opening for a New York listing of $1 billion or more in over two years, according to Bloomberg reports. Giving private equity firm L Catterton majority control of the storied shoemaker in 2021 is a significant reward for the German cobbler heirs' wager.
Christian has seen a profit of almost 100% on the minority stake he retained, while Alex is no longer listed as a shareholder. From the 2021 transaction, together the duo collected more than $3.2 billion which set the shoemaker on the path to public markets. Shares were trading at $41.50, down 9.8% from their offering price, at 1:55 pm in New York.
Meanwhile, LVMH-backed Birkenstock was set to list its shares on the New York Stock Exchange on Wednesday after the German luxury sandal maker notched a valuation of $9.3 billion in its US initial public offering. The company's IPO raised $1.48 billion after its 32.3 million shares were conservatively priced at $46 apiece, positioning the 250-year-old brand for a smooth market debut. Birkenstock is the fourth major company to launch a US IPO in the last four weeks following those of chip designer Arm Holdings, grocery delivery app Instacart and marketing automation platform Klaviyo.
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