A leading investor in Dr Martens PLC has called on the boot maker to launch a review that could lead to a sale of the company, according to Reuters.

Shares in Dr Martens rose 3.1% to 92.80 pence in London on Wednesday.

Investment firm Marathon Partners Equity Management wants Dr Martens to hire bankers and begin an immediate strategic review that could spark a sale of the firm, according to a letter seen by Reuters.

The New York-based company argues Dr Martens’ stalled earnings growth and sharp share price drop since its public listing in 2021 have decoupled its valuation from its intrinsic value.

https://www.reuters.com/markets/deals/marathon-partners-pushes-dr-martens-strategic-review-possible-sale-2024-04-02/

‘Maintaining Dr. Martens as an independent publicly traded company is likely no longer in the best interests of shareholders,’ Mario Cibelli, Marathon Partners’ managing member, wrote to the company’s board last month.

Dr Martens, famed for its iconic chunky soled boots with yellow stitching, would likely produce higher earnings as a private company or as part of a larger, multi-brand holding company, the letter said.

The letter, addressed to Dr Martens board Chair Paul Mason and dated March 15, was seen by Reuters this week.

Cibelli suggested potential buyers might pay as much as $2 billion for the company, compared to its current market value of about $1.1 billion.

The investment firm owns roughly 5 million shares, making it one of the 30 largest investors in Dr Martens, Reuters said.

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