VF Corporation Announces Definitive Agreement to Acquire Icebreaker®, a New Zealand-Based Outdoor and Sport Apparel Brand
November 02 2017 - 5:00PM
Business Wire
The Icebreaker® brand amplifies VF’s focus on
high-performance apparel made of natural fibers
VF Corporation (NYSE: VFC), a global leader in branded lifestyle
apparel, footwear and accessories, and Icebreaker Holdings, Ltd., a
privately held company based in Auckland, New Zealand, today
announced that they have signed a definitive purchase agreement.
Terms of the agreement were not disclosed.
On a trailing 12-month basis, Icebreaker Holdings generated
approximately $150 million of revenue. The transaction is expected
to be completed early in 2018 and the addition of the Icebreaker®
brand to VF’s portfolio is expected to be immediately accretive to
earnings per share.
The Icebreaker® brand was founded in 1995 on the belief that
“nature always has a better solution,” and its entire product
assortment is based on Merino wool, plant-based fibers and recycled
fibers. Its “farm to garment” approach uses Merino wool sourced
from the most sustainable and ethical Merino farms in New Zealand.
Icebreaker® has 340 full-time employees and its products are sold
in 47 countries through wholesale channels and branded retail and
e-commerce platforms.
“Bringing the Icebreaker® brand into the VF portfolio is a
special opportunity,” said Steve Rendle, Chairman, President and
Chief Executive Officer of VF Corporation. “Its natural fiber focus
is an ideal complement to our SmartWool® brand, which also features
Merino in its clothing and accessories. Together, the SmartWool®
and Icebreaker® brands create an advantaged position for VF as a
leader in the growing and underpenetrated natural fiber category.
We will have unmatched capabilities that will strengthen our
ability to create innovative and sustainable natural fiber products
across our brand portfolio, especially in VF’s Outdoor and Workwear
brands.”
“I founded Icebreaker® to offer a natural choice to adventurers,
and to build a global brand from New Zealand,” said Jeremy Moon,
Founder, Icebreaker Holdings. “Our partnership with VF provides us
with the largest platform in the world to tell our story, access
new markets and reach new consumers at an accelerated pace. This is
a once-in-a-lifetime opportunity for our global Icebreaker® brand
team and for our wool suppliers to introduce a whole new universe
of consumers to the benefits of sustainably farmed, ethically
sourced, New Zealand Merino wool.”
“Jeremy’s goal was to build a global community that believed in
his vision that nature held the answers to creating sustainable,
high-performance outdoor clothing,” said Rob Fyfe, Chairman of
Icebreaker Holdings. “Today the Merino apparel category is one of
the fastest growing categories in both the outdoor and active urban
clothing markets around the globe.”
Barclays is acting as exclusive financial advisor to VF
Corporation and Davis Polk & Wardwell LLP is acting as legal
advisor.
About VF
VF Corporation (NYSE: VFC) outfits consumers around the world
with its diverse portfolio of iconic lifestyle brands, including
Vans®, The North Face®, Timberland®, Wrangler® and Lee®.
Founded in 1899, VF is one of the world’s largest apparel, footwear
and accessories companies with socially and environmentally
responsible operations spanning numerous geographies, product
categories and distribution channels. VF is committed to delivering
innovative products to consumers and creating long-term value for
its customers and shareholders. For more information,
visit www.vfc.com.
About Icebreaker
Founded by Jeremy Moon in 1995 in New Zealand, the Icebreaker®
brand pioneered the ethical and sustainable production of natural
performance apparel. The apparel collection for men, women &
children harnesses the natural performance properties of Merino
wool sourced directly from the most sustainable and ethical Merino
farms in New Zealand. The Icebreaker® brand is now sold in 47
countries through wholesale, branded retail & e-commerce
platforms. To discover more visit www.icebreaker.com.
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. 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. 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 in this release include, but
are not limited to: foreign currency fluctuations; the level of
consumer demand for apparel, footwear and accessories; disruption
to VF’s distribution system; VF’s reliance on a small number of
large customers; 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; VF’s and its customers’ and vendors’ ability to
maintain the strength and security of information technology
systems; 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; changes in tax
liabilities; legal, regulatory, political and economic risks; and
adverse or unexpected weather conditions. 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
Securities and Exchange Commission, including VF’s Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q.
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version on businesswire.com: http://www.businesswire.com/news/home/20171102006716/en/
VF CorporationJoe Alkire, 336-424-7711VP, Investor Relations and
Financial Planning & AnalysisorCraig Hodges, 336-424-5636Senior
Director, Corporate Communications
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