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VF Corporation has acquired streetwear brand Supreme as part of a definitive merger agreement, valued at $2.1bn.
The company’s current investors, Goode Partners and Carlyle Group, are selling their stakes in Supreme.
The acquisition is consistent with VF’s growth ambitions and is expected to contribute at least $500m (£376m) of revenue and $0.20 of adjusted EPS in the fiscal year 2022.
Morgan Stanley facilitated the transaction, while Davis Polk and Wardwell LLP served as legal advisor.
Steve Rendle, VF’s chairman, president, and chief executive officer, said: “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.
“VF is the ideal steward to honour the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth.”
He added: “The acquisition of the Supreme brand is further validation of our vision and strategy to further evolve our portfolio of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector.
“The Supreme brand will further accelerate VF’s hyper-digital business model transformation and will be a meaningful driver of VF’s commitment to top quartile total shareholder return and long-term value creation.”
