VF Corp., the parent company of brands like Vans, The North Face, Timberland and Dickies announced earlier today that it will acquire Supreme. The valuation puts the sell price on Supreme at $2.1 billion USD and the deal is expected to close by the end of the year. Current investors Carlyle Group Inc. and Goode Partners LLC are all selling their shares in the company to VF.
Supreme already has seasonal collaborations with The North Face – just a couple of week’s ago they dropped their Fall/Winter 2020 capsule collection – and has also worked on numerous collaborations with Vans and Timberland throughout the years. VF expects Supreme to continue to work with those brands as well as brands outside of the VF portfolio. This move was made by VF in order to boost their direct-to-consumer (DTC) expansion and use Supreme’s established brand power, customer understanding and global supply chain. “Supreme is expected to contribute at least $500 million of revenue and $0.20 of adjusted EPS in fiscal 2022,” said VF in their press release.
Steve Rendle, the chairman, president and CEO of VF made the following statement:
“We are thrilled to welcome Supreme to the VF family and to build on our decades-long relationship as we create value for all 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.”
Supreme’s founder James Jebbia will stay on with the company and he made the following comment:
“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. This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”
Only time will tell if Supreme will succeed or if this acquisition is the final “sell out” move.
Photo via Supreme