Cha Ching! Vans Owner VF Corp. To Buy Supreme In $2.1 Billion Deal

by Freya Drohan

VF Corporation, the parent company of Vans, Timberland, and The North Face, has acquired popular streetwear brand Supreme in a mega deal that values the company at $2.1 billion.

The highly-publicized deal comes as VF Corp. attempts to bolster its portfolio of apparel brands, with the intention to eventually grow the cult-favorite Gen Z brand into a billion-dollar company. According to Business of Fashion, Supreme already generates annual revenue in the region of $500 million; a figure which is expected to grow 8-10% in the next four years.

The outlet adds that VF Corp. will take a “hand-off approach”, with CEO Steve Rendle explaining that they are not “coming in to make changes”: “We’re here to support and enable…a high performing business,” he said.

According to Bloomberg, VF Corp. jumped the most today in its 33-year history after agreeing to buy the brand. The cash transaction marks Denver-based VF Corp’s largest  acquisition since purchasing Timberland in 2011 for $2.3 billion. It’s expected that the deal will be completed by the end of the year.

 

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Paris, 2020. 📹@james_cruickshank_

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Previously, Supreme was bought by private equity firm Carlyle Group and investors including Goode Partners for a reported $500 million in 2017 for a 50% stake.

“We’ve been on a journey the last four years to evolve our portfolio to really align with where we saw the market and more importantly the consumer going,” VF Chief Executive Officer Steve Rendle said in an interview. “Supreme fits so well into our evolved portfolio.”

The New York-based brand was founded in 1994 by James Jebbia, who remains as CEO. Supreme has collaborated with high-profile artists including Damien Hirst, Takashi Murakami, and Richard Prince as well as Louis Vuitton.

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