Daily Management Review

Dr. Martens to launch IPO in London


British investment company Permira has decided to sell part of its stake in footwear maker Dr. Martens through an IPO, the Financial Times reports. The company's initial public offering will take place on the London Stock Exchange.

Raysonho @ Open Grid Scheduler / Grid Engine
Raysonho @ Open Grid Scheduler / Grid Engine
Permira acquired the Dr. Martens brand in 2013 by buying a 91.5 per cent stake in British footwear maker R Griggs Group. According to sources, Dr Martens was offered between £120m and £200m. Among those interested in buying Dr Martens was Pamplona Capital, an investment fund. However, Permira offered £300m and eventually beat off the competition for the iconic brand.

Permira itself first considered selling Dr. Martens back in 2019. Among the options considered were a direct sale of its stake in the shoe maker, as well as a listing on the stock exchange. In the end, the investment fund decided to sell part of its stake in the shoe maker. The IPO will include the sale of the shares currently held by Permira and some other existing shareholders. The company does not plan to issue additional shares. After the IPO, the free float of the Dr. Martens manufacturer will be at least 25 percent.

As of March 2020, Dr. Martens had annual revenues of £672 million and profits of £184 million. However, despite the COVID-19 pandemic, sales did not fall last year: on the contrary, in the first six months of fiscal 2020/21 (April-September) they rose by 18% year-on-year.

source: ft.com