LONDON (ShareCast) - (Sharecast News) - Vans and North Face owner VF Corp has agreed to acquire streetwear icon Supreme in a $2.1bn deal aimed at bolstering its portfolio of apparel and footwear brands.
The cash deal, expected to be completed by the end of 2020, will be VF's largest acquisition since snapping up Timberland for $2.3bn back in 2011.

VF will acquire Supreme from private equity firm Carlyle Group and investors including Goode Partners, who paid $500.0m for a 50% stake in the brand back in 2017 - an investment that could double in value based on the latest transaction.

The Denver-based firm expects Supreme to be only modestly accretive to revenues and adjusted earnings in the year ending March 2021, providing at least $500.0m in revenues and an adjusted earnings per share of around $0.20.

Chief executive Steve Rendle said: "We've been on a journey the last four years to evolve our portfolio to really align with where we saw the market and more importantly the consumer going.

"Supreme fits so well into our evolved portfolio."

The New York-based company, which already has an international presence, will benefit from VF's supply chain, while the latter will look to learn from Supreme's business model, which relies on weekly release of new products and frequent collaborations with the likes of Levi Strauss and Nike.

As of 1350 GMT, VF shares were up 9.98% in pre-market trading at $77.0 each.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE