VF Corporation to Explore Strategic Alternatives for the Occupational Portion of Its Work Segment
January 21 2020 - 6:55AM
Business Wire
- Announcement Reflects VF’s Continued Focus on Portfolio
Optimization
- Company Remains Committed to Dickies® and Timberland PRO®
Brands
VF Corporation (NYSE: VFC) today announced that it is commencing
a review of strategic alternatives for the occupational portion of
its Work segment. This strategic review is a reflection of
management’s continued focus on transforming VF into a more
consumer-minded and retail-centric enterprise, with a portfolio of
growth-oriented active, outdoor and work brands.
The occupational portion of the Work segment consists of
primarily nine brands and businesses: Red Kap®, VF Solutions®,
Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and
Horace Small®.
The review does not include Dickies® and Timberland PRO®
brands.
“Driving and optimizing our portfolio continues to be a top
strategic priority for VF, and exploring strategic alternatives for
our occupational Work brands is the natural next step in that
process,” said Steve Rendle, VF’s Chairman, President and CEO.
“Divesting these brands would leave VF with a simplified portfolio
of higher-growth, consumer-focused brands, while providing
financial flexibility to fuel further strategic initiatives and
enhance shareholder value.”
Rendle continued, “The occupational portion of our Work segment
is a compelling business, marked by a strong and consistent
financial profile and valuable customer relationships. Our teams
have done an excellent job building this business over many years,
putting us in an ideal position to find the best future owner for
these brands.”
The brands under review outfit millions of workers in the
industrial, service and government sectors and are primarily
distributed through the business-to-business channel. Together,
they represented approximately $865 million of VF’s fiscal 2019
revenue and approximately 50 percent of Work segment revenue. The
business is primarily based in the U.S., with customers including
top U.S. government agencies and Fortune 100 companies.
Please refer to the related presentation at ir.vfc.com for more
information.
VF has retained Barclays as its financial advisor and Davis Polk
as its legal counsel to assist in the review process.
About VF Corporation
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.
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Joe Alkire Vice President, Corporate Development, Investor
Relations and Treasury (720) 778-4051
Craig Hodges Vice President, Corporate Affairs (720)
778-4116
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