VF Corporation Wraps Up Purchase Of Supreme

VF Corporation has closed on its purchase of Supreme for a $2.1 billion aggregate base purchase price, which is “subject to customary adjustments for cash, indebtedness, working capital and transaction expenses.” The international streetwear brand has become a VF Corporation wholly-owned subsidiary with the deal, according to an announcement.

Supreme is anticipated to be “modestly accretive” to the VF Corporation’s sales and adjusted earnings per share in fiscal 2021. That brand is anticipated to contribute a minimum of $500 million in sales and 20 cents of adjusted earnings per share (EPS) in fiscal 2022.

“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,” VF said in the announcement.

VF Corporation, which was started in 1899, is among the world’s biggest clothing, shoe and accessory companies with brands such as Dickies, Timberland, The North Face and Vans.

In November, VF Corporation and Supreme signed a merger agreement. Supreme sells attire, accessories and footwear under its eponymous label around the world through direct-to-consumer (D2C) channels.

“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 Chairman, President and CEO Steve Rendle said in an announcement at the time.

In October, VF Corporation reported $256.7 million or 66 cents per share in operating income on $2.6 billion in revenue for the three months that concluded on Sept. 30, 2020. The compares to $649 million or $1.63 a share on net income of $3.2 billion in revenue for the year-ago quarter. The Colorado-based firm also declared a 49 cents per common share dividend for the quarter concluding Sept. 30, in contrast to 43 cents for the same quarter a year ago.