North Face Parent to Buy Dickies Owner -- WSJ
August 15 2017 - 3:03AM
Dow Jones News
By Cara Lombardo
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 15, 2017).
VF Corp., the owner of clothing brands such as the North Face
and Timberland, said that it has reached a deal to buy
Williamson-Dickie Manufacturing Co. for $820 million in cash, in a
deal VF says will double its presence in the workwear-apparel
market.
Williamson-Dickie, a private company best known for Dickies
scrubs and Walls outdoor coveralls, generated $875 million in
revenue in the past 12 months, VF said. VF Chief Executive Steve
Rendle said the acquisition, expected to close in the fourth
quarter, will create a workwear segment with about $1.7 billion in
annual revenue.
VF, whose apparel and accessories offerings range from Nautica
sportswear to Smartwool socks, has been tweaking its portfolio in
recent months, shedding a group of luxury brands and a licensed
sportswear company.
Chief Financial Officer Scott Roe said on a conference call
Monday to expect more changes to the company's portfolio. "We're
not finished," he said. "Stay tuned."
Analysts expect continued momentum in career apparel, which VF
estimates to be a $30 billion-a-year industry, as the U.S. job
market expands. Williamson-Dickie's large peers in the industry
include Carhartt brand parent Carhartt Inc. and Duluth Trading
parent Duluth Holdings Inc.
VF said buying Williamson-Dickie will especially increase its
sales for health-care and service apparel. Williamson-Dickie also
operates manufacturing plants in Mexico and Honduras.
Williamson-Dickie has 400 retail stores and a presence in more
than 100 countries, though 66% of its sales are in the U.S.
Williamson-Dickie Chief Executive Philip Williamson and the
company's 7,000 employees are expected to remain with the combined
company.
As a result of the Williamson-Dickie deal, VF raised its
forecast on annual revenue by $200 million to $11.85 billion and
lifted its adjusted earnings guidance by 2 cents to $2.96 a
share.
VF shares, up 18% so far this year, rose 2% to $62.96 in early
afternoon trading on Monday.
(END) Dow Jones Newswires
August 15, 2017 02:48 ET (06:48 GMT)
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