VFC VF Corporation

By Cara Lombardo 

VF Corp., the owner of clothing brands such as The North Face and Timberland, said Monday it would buy Williamson-Dickie Mfg. Co. for $820 million in cash, as it seeks to expand 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 last 12 months. VF Chief Executive Steve Rendle said the acquisition, expected to close in the fourth quarter, will create a company 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. Analysts expect continued momentum in career-apparel sales as the U.S. job market expands.

Williamson-Dickie's Chief Executive Philip Williamson and its 7,000 employees are expected to remain with the combined company.

As a result of the Williamson-Dickie's deal, VF also 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 15% so far this year, rose less than 1% premarket Monday on light volume.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

August 14, 2017 09:08 ET (13:08 GMT)

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