VF Corporation Completes Acquisition of Supreme®
December 28 2020 - 4:30PM
Business Wire
VF Corporation (NYSE: VFC), a global leader in branded lifestyle
apparel, footwear and accessories, today announced that it has
completed its previously announced acquisition of Supreme®, a
privately-owned global streetwear brand, for an aggregate base
purchase price of $2.1 billion subject to customary adjustments for
cash, indebtedness, working capital and transaction expenses. As a
result of the transaction, Supreme® has become a wholly owned
subsidiary of VF Corporation.
The acquisition of the Supreme® brand accelerates VF’s
consumer-minded, retail-centric, hyper-digital business model
transformation and builds on a long-standing relationship between
Supreme® and VF, with the Supreme® brand being a regular
collaborator with VF’s Vans®, The North Face® and Timberland®
brands.
Supreme® is expected to be modestly accretive to VF’s revenue
and adjusted earnings per share 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.
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.
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VF Corporation Contacts
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)
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