VF Corporation Announces Definitive Agreement to Acquire Iconic, Global Streetwear Leader Supreme®
November 09 2020 - 6:55AM
Business Wire
- Acquisition accelerates VF’s consumer minded, retail-centric,
hyper-digital business model transformation;
- Acquisition follows long-standing relationship between Supreme®
and VF, with the Supreme® brand a regular collaborator with VF’s
Vans®, The North Face® and Timberland® brands;
- The Supreme® brand offers a $1 billion global opportunity over
time through International and Direct-to-Consumer (DTC) expansion,
core pillars of VF’s 2024 strategy;
- The Supreme® brand’s DTC model, brand loyalty and global
footprint complements the ‘street-inspired’ aspects of VF’s Vans®,
The North Face®, Timberland® and Dickies® brands;
- Acquisition is consistent with VF’s commitment to active
portfolio management and enhances VF’s growth, profitability and
cash flow profile; and,
- The Supreme® brand is expected to be modestly accretive to VF’s
revenue and adjusted EPS in fiscal 2021. The Supreme® brand is
expected to contribute at least $500 million of revenue and $0.20
of adjusted EPS in fiscal 2022.
VF Corporation (NYSE: VFC), a global leader in branded lifestyle
apparel, footwear and accessories, and Supreme®, a privately-owned
global streetwear brand, today jointly announced that they have
signed a definitive merger agreement. Current investors, The
Carlyle Group and Goode Partners, are selling their stakes in the
Supreme® brand.
The transaction is expected to be completed late in calendar
year 2020, subject to customary closing conditions and regulatory
approval. Additional details regarding the transaction and the
strategic rationale supporting it will be reviewed during a VF
conference call held at 8:30 a.m. Eastern Time today. The
conference call will be broadcast live via the internet, accessible
at ir.vfc.com. An investor presentation will also be available at
the same location beginning at approximately 7:30 a.m. Eastern Time
today and will be archived at the same location.
Supreme® sells apparel, accessories and footwear under its
namesake brand globally through direct-to-consumer channels,
primarily digital. The Supreme® brand’s founder, James Jebbia and
the senior leadership team of the brand will remain with the
company, headquartered in New York City, New York.
“We are thrilled to welcome Supreme® to the VF family and to
build on our decades-long relationship as we create value for all
of our stakeholders. VF is the ideal steward to honor the authentic
heritage of this cultural lifestyle brand while providing the
opportunity to leverage our scale and expertise to enable
sustainable long-term growth,” said Steve Rendle, VF’s Chairman,
President, and Chief Executive Officer. “The acquisition of the
Supreme® brand is further validation of our vision and strategy to
further evolve our portfolio of brands to align with the total
addressable market opportunities we see driving the apparel and
footwear sector. The Supreme® brand will further accelerate VF’s
hyper-digital business model transformation and will be a
meaningful driver of VF’s commitment to top quartile total
shareholder return and long-term value creation.”
“We are proud to join VF, a world-class company that is home to
great brands we’ve worked with for years, including The North
Face®, Vans®, and Timberland®,” said Jebbia. “This partnership will
maintain our unique culture and independence, while allowing us to
grow on the same path we’ve been on since 1994.”
Morgan Stanley provided a fairness opinion in connection with
the transaction, and Davis Polk & Wardwell LLP served as legal
advisor.
Forward-looking Statements
Certain statements included in this release are "forward-looking
statements" within the meaning of the federal securities laws.
Forward-looking statements are made based on our expectations and
beliefs concerning future events impacting VF and therefore involve
several risks and uncertainties. You can identify these statements
by the fact that they use words such as “will,” “anticipate,”
“estimate,” “expect,” “should,” and “may” and other words and terms
of similar meaning or use of future dates, however, the absence of
these words or similar expressions does not mean that a statement
is not forward-looking. All statements regarding VF’s plans,
objectives, projections and expectations relating to VF’s
operations or financial performance, and assumptions related
thereto are forward-looking statements. We caution that
forward-looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in
the forward-looking statements. VF undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. Potential risks and uncertainties that could
cause the actual results of operations or financial condition of VF
to differ materially from those expressed or implied by
forward-looking statements include, but are not limited to: risks
arising from the widespread outbreak of an illness or any other
communicable disease, or any other public health crisis, including
the coronavirus (COVID-19) global pandemic; the level of consumer
demand for apparel, footwear and accessories; disruption to VF’s
distribution system; the financial strength of VF’s customers;
fluctuations in the price, availability and quality of raw
materials and contracted products; disruption and volatility in the
global capital and credit markets; VF’s response to changing
fashion trends, evolving consumer preferences and changing patterns
of consumer behavior; intense competition from online retailers;
manufacturing and product innovation; increasing pressure on
margins; VF’s ability to implement its business strategy; VF’s
ability to grow its international and direct-to-consumer
businesses; retail industry changes and challenges; VF’s and its
vendors’ ability to maintain the strength and security of
information technology systems; the risk that VF’s facilities and
systems and those of our third-party service providers may be
vulnerable to and unable to anticipate or detect data security
breaches and data or financial loss; VF’s ability to properly
collect, use, manage and secure consumer and employee data; foreign
currency fluctuations; stability of VF’s manufacturing facilities
and foreign suppliers; continued use by VF’s suppliers of ethical
business practices; VF’s ability to accurately forecast demand for
products; continuity of members of VF’s management; VF’s ability to
protect trademarks and other intellectual property rights; possible
goodwill and other asset impairment; maintenance by VF’s licensees
and distributors of the value of VF’s brands; VF’s ability to
execute and integrate acquisitions; changes in tax laws and
liabilities; legal, regulatory, political and economic risks; the
risk of economic uncertainty associated with the exit of the United
Kingdom from the European Union (“Brexit”) or any other similar
referendums that may be held; adverse or unexpected weather
conditions; VF's indebtedness and its ability to obtain financing
on favorable terms, if needed, could prevent VF from fulfilling its
financial obligations; climate change and increased focus on
sustainability issues; and risks associated with the spin-off of
our Jeanswear business completed on May 22, 2019, including the
risk that VF will not realize all of the expected benefits of the
spin-off; the risk that the spin-off will not be tax-free for U.S.
federal income tax purposes; and the risk that there will be a loss
of synergies from separating the businesses that could negatively
impact the balance sheet, profit margins or earnings of VF. More
information on potential factors that could affect VF’s financial
results is included from time to time in VF’s public reports filed
with the SEC, including VF’s Annual Report on Form 10-K, and
Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished
with the SEC.
About VF
Founded in 1899, VF Corporation is one of the world’s largest
apparel, footwear and accessories companies connecting people to
the lifestyles, activities and experiences they cherish most
through a family of iconic outdoor, active and workwear brands
including Vans®, The North Face®, Timberland® and Dickies®. Our
purpose is to power movements of sustainable and active lifestyles
for the betterment of people and our planet. We connect this
purpose with a relentless drive to succeed to create value for all
stakeholders and use our company as a force for good. For more
information, please visit vfc.com.
About Supreme®
In April 1994, Supreme® opened its doors on Lafayette Street in
downtown Manhattan and became the home of New York City skate
culture. At its core was a group of neighborhood kids, New York
skaters and local artists who became the store’s staff, crew and
customers. While it developed into a downtown institution, Supreme
established itself as a brand known for its quality, style, and
authenticity. Over 25 years, the Supreme® brand has expanded from
its New York City origins into a global community.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201109005300/en/
VF Corporation Joe Alkire Vice President, Corporate
Development, Investor Relations and Treasury Joe_Alkire@vfc.com
Craig Hodges Vice President, Corporate Affairs
Craig_Hodges@vfc.com
VF (NYSE:VFC)
Historical Stock Chart
From Mar 2024 to Apr 2024
VF (NYSE:VFC)
Historical Stock Chart
From Apr 2023 to Apr 2024