Permira Said to Weigh Fresh Plans to Exit Bootmaker Dr. Martens

(Bloomberg) -- Permira is considering reviving plans to exit its investment in iconic British bootmaker Dr. Martens, according to people familiar with the matter.

The U.K. buyout firm could restart discussions in the next few months about a potential sale or initial public offering of Dr. Martens, the people said, asking not to be identified as discussions are private.

Permira began working with advisers in mid-2019 on ways to offload the business and attracted interest from suitors including rival private equity firm Carlyle Group LP, Bloomberg News reported at the time. Those discussions didn’t result in an agreement, and then the coronavirus pandemic hit and curbed dealmaking.

Deliberations are at an early stage, and no final decisions have been made on a preferred exit strategy, the people said. While Permira is weighing options for Dr. Martens, the buyout firm is in no hurry to kick off a formal process as it’s pleased with the performance of the business, one of the people said.

A representative for Permira declined to comment.

Permira bought Dr. Martens in 2014 for 380 million euros ($449 million) and has since increased its global presence, opening new stores and expanding its e-commerce offering. Before the coronavirus pandemic forced the temporary closing of its stores in Europe and the U.S., operating profit at Dr. Martens rose 110% to 142.5 million pounds ($189 million) for the year through March, according to Permira’s website.

The company is named after German doctor Klaus Martens, who teamed up with mechanical engineer Herbert Funk in the 1940s to begin producing shoes from disused military supplies. Its boots were elevated to rock star status in the late 1960s, when The Who’s guitarist Pete Townshend started wearing them onstage.

European companies have been involved in $174.7 billion of consumer deals this year, down 45% from the same period in 2019, according to data compiled by Bloomberg. The sector has been badly impacted by Covid-19, with lockdowns keeping consumers indoors and away from spending on the high streets.

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