VF Corp. Announces Agreement to Acquire, Streetwear Leader Supreme®

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.

DENVER, CO (STL.News) 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.

NOTE: this is NOT the complete release.

View complete release at: https://www.vfc.com/investors/news-events-presentations/press-releases/detail/1738/vf-corporation-announces-definitive-agreement-to-acquire