Dr Martens boots brand to be acquired by Permira

Dr Martens – the British company behind the eponymous boots beloved by everyone from skinheads to rocker Pete Townshend – is set to be sold to private equity firm Permira in a £300m deal.

The deal, which could be sealed as early as next month, would mark the end of more than half a century of family ownership for the brand.

Permira is buying out the Griggs family’s stake in the bootmaker. The family owns 91.5 per cent of the business. The remaining stake will still be controlled by management if the deal goes ahead.

Under the terms of the potential deal, Permira would be acquiring the licence to use the Dr Martens brand in perpetuity. Dr Martens pays a licence fee of 2.5 per cent on sales of up to £200m – and 2 per cent on sales above that – to the heirs of the German pair, Dr Funck and Dr Martens, who invented the boot’s distinctive sole.

The Griggs family attempted to sell their stake last year, but ducked out of the process after bids failed to meet their valuation. Reports valued the bootmaker at anywhere between £120m and £200m last year.

The bootmaker had revenues of £110m in 2011 – up by a third year-on-year. Over the same period pre-tax profits more than trebled year-on-year to £15.3m, thanks to growing overseas demand.

The Northampton-based company’s eponymous boots first came on the market in 1960, becoming popular within the skinhead youth culture and among figures such as Peter Townsend, The Who’s guitarist.

Explaining his preference for the heavy-duty footwear, Mr Townsend told the Observer: “I was sick of dressing up as a Christmas tree in flowing robes that got in the way of my guitar playing so I thought I’d move on to utility wear.”

Dr Martens will join a host of fashion brands in Permira’s stable, among them fashion retailer New Look and menswear group Hugo Boss.