New York (CNN Business)VF Corp. is adding skateboard and streetwear brand Supreme to its line of recreational apparel brands as people seek comfort and leisure wear during the pandemic.
The parent company of Vans, Dickies, Timberland and The North Face on Monday announced plans to purchase Supreme in a $2.1 billion acquisition deal set to be completed before the end of the year.Founded in a New York skateboard shop in 1994, Supreme apparel has become popular with skateboarders, hip-hop fans and other Millennial and Gen Z youth cultures. In 2007, the Carlyle Group acquired half the company for $500 million. Over the years, VF and Supreme have routinely collaborated on products for VF’s North Face, Timberland and Vans apparel lines.
Pedestrians walk past an American skateboarding shop and clothing brand Supreme store in Shanghai on September 9, 2019.Both companies’ leaders say the acquisition allows Supreme to leverage VF’s expertise and resources, including its global supply chain, to maximize growth. VF (VFC) says Supreme gives it “deeper access to attractive consumer segments that apply to many of VF’s existing brands.”VF CEO Steve Rendle says his company is the “ideal steward” for Supreme’s unique brand and can provide it with the resources and insight “to enable sustainable long-term growth.”Read More
“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,” Rendle said in a written statement.The news gave VF’s stock price a notable boost following the opening bell on Monday before leveling out by midday.
Source: edition.cnn.com