11.09.20 - VF Corp recently released the statement that it would acquire the streetwear apparel company Supreme for $2.1 billion. VF Corp, which will be adding Supreme to its roster of brands such as The North Face, Van and Timberland, said it would make an additional payment of up to $300 million subject to satisfaction of certain post-deal closing milestones.
The company added that current investors Carlyle Group and New York-based private equity firm Goode Partners are selling their stakes in Supreme. Shares of VF Corp rose 10% to $77.24 in premarket trading after the new broke.
Known primarily for its red box with “Supreme” written in a white font logo, the brand has gained a cult following among fans of the streetwear style. VF Corp’s deal with Supreme will help improve and strengthen its e-commerce business that has become the top priority due to the COVID-19 pandemic.
“The Supreme brand will further accelerate VF’s hyper-digital business model transformation,” VF Corp Chief Executive Officer Steve Rendle said.
Supreme, which has collaborated with many prominent fashion names including Louis Vuitton as well as Nike, Levi and Vans, gets over 60% of its revenue from the online business. The deal, which is expected to be completed late in calendar year 2020, is anticipated to contribute at least $500 million of revenue and adjusted earnings per share of 20 cents in fiscal 2022.
Source: Wall Street Journal