Allbirds Sells for $39 Million After Raising $348 Million in IPO

Allbirds, a popular wool sneaker brand, is being sold to American Exchange Group for $39 million, a significant drop from its $348 million IPO and $4 billion valuation

Key Takeaways

• Allbirds is being sold to American Exchange Group for $39 million
• The company raised $348 million in its 2021 IPO and had a $4 billion valuation
• The sale price represents a significant drop in value for the 11-year-old brand

In This Article

1. What Happened to Allbirds
2. Sale Details and Implications
3. Who is the Buyer

What Happened to Allbirds

Allbirds, a popular wool sneaker brand, has agreed to sell its assets and intellectual property

• The sale is a result of the company's struggles after expanding into physical retail and new product categories
• Allbirds expanded into leggings, jackets, and performance running shoes, which did not connect with its core customers
• The company's losses stacked up, and co-founder Tim Brown admitted that the rapid growth had cost the company some of its DNA

Sale Details and Implications

The sale is expected to close in the second quarter

• The $39 million sale price represents a premium to the company's current market cap of $24.5 million
• Shares jumped 36% on the news in after-hours trading, with the stock closing at $2.98 on Monday
• The sale is subject to shareholder approval and is expected to be completed by the third quarter

Who is the Buyer

American Exchange Group is a privately held brand management firm

• The company is 18 years old and owns other brands such as Aerosoles and Jonathan Adler
• American Exchange Group is a portfolio company with a focus on brand management and development
• The acquisition of Allbirds is a significant addition to the company's portfolio

“some of our DNA”

— Tim Brown, Co-founder

Final Thoughts

The sale of Allbirds is a significant development in the retail industry, and it will be interesting to see how the brand evolves under new ownership. For more news and analysis, visit logicity.in

Sources & Credits

Source: TechCrunch — by Connie Loizos