Apparel Giant, VF Corporation Has Bought Supreme for US$2.1 Billion
The company already owns brands like The North Face, Timberland and Dickies.
VF Group, the parent company of Timberland, Vans, Dickies and The North Face announced on Monday that it is going to purchase streetwear brand Supreme by paying USD 2.1 (About AUD 2.88) billion. The deal will be completed by the end of 2020.
Supreme, skateboarding and clothing brand was founded in 1994 in a New York skateboard shop, and it has become quite popular over the years. People who love the brand are usually skateboarders, hip-hop fans, and several other Gen Z and Millennial youth cultures. The Carlyle Group acquired half of Supreme in 2007 for USD 500 (about AUD 687) million. In the last few years, Supreme and VF have collaborated for products for VF’s brands like North Face, Timberland, Vans, etc.
The leaders of both companies say that the acquisition would allow Supreme to leverage VF’s resources and expertise. For instance, it can use the global supply chain to maximize growth. VFC also said that Supreme gives it “deeper access to attractive consumer segments that apply to many of VF’s existing brands.”
The President, Chairman and CEO of VF Corporation, Steve Rendle said this about the deal –
“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. We are not coming in to make changes. We’re here to support and enable.”
The founder of Supreme, James Jebbia also spoke of the deal and said “This partnership will maintain our unique culture and independence while allowing us to grow on the same path we’ve been on since 1994,”
VF’s stock prices saw a surge after the news of the deal was made public. There was a notable boost on Monday, but it levelled out by midday.
As VF Corporation has fully acquired Supreme, it means that there will be a complete divestment of previous stakeholders like Goode Partners and The Carlyle Group.
This acquisition would also keep Supreme in the news for a while and might boost product sales.