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EssilorLuxottica, a global manufacturer in the optical industry, has announced that it has agreed a deal to acquire Supreme from VF Corporation in a deal worth $1.5bn (£1.15bn).
The deal will see the eyewear giant expand into the streetwear segment for the first time.The transaction is expected to close by the end of 2024, subject to customary closing conditions and regulatory approvals.
Supreme runs a digital-first business with 17 stores in the US, Asia and Europe and its sale is expected to be dilutive to VF’s earnings per share in fiscal 2025.
VF Corp acquired Supreme from Carlyle Group in a £1.6bn deal back in 2020.
Francesco Milleri, chairman and chief executive officer and Paul du Saillant, deputy chief executive officer at EssilorLuxottica, said: “We see an incredible opportunity in bringing an iconic brand like Supreme into our company. It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity.
“With its unique brand identity, fully-direct commercial approach and customer experience – a model we will work to preserve – Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well. They will be well-positioned to leverage our group’s expertise, capabilities, and operating platform.”
Bracken Darrell, president and chief executive officer at VF, added: “Under VF, Supreme expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth.
“However, given the brand’s distinct business model and VF’s integrated model, our strategic portfolio review concluded there are limited synergies between Supreme and VF, making a sale a natural next step. Alongside the other notable brands in EssilorLuxottica’s portfolio, Supreme and its talented team will be well-positioned for continued success.”
James Jebbia, Supreme founder, concluded: “In EssilorLuxottica, we have a unique partner that understands that we are at our best when we stay true to the brand and continue to operate and grow as we have for the past 30 years. This move lets us focus on the brand, our products, and our customers, while setting us up for long-term success.”
