Timberland owner VF Corp to buy Supreme in £1.5bn deal

// Supreme to be bought by VF Corporation in £1.5 billion deal

// Supreme founder James Jebbia and its senior leadership team will remain with the company

// VF Corporation owns Vans, The North Face and Timberland

VF Corporation, which owns Vans, The North Face and Timberland, is set to acquire streetwear brand Supreme in a $2.1 billion (£1.5 billion) deal.

The transaction will be completed by the end of 2020, subject to regulatory approval.

Supreme founder James Jebbia and its senior leadership team will remain with the company.

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VF Corp chief executive Steve Rendle said the company would take a “hands-off” approach to managing Supreme.

“We are not coming in to make changes. We’re here to support and enable a high performing business,” he said.

According to VF Corp, Supreme currently generates more than $500 million in annual revenues, up from around $200 million in 2017.

More than 60 per cent of Supreme’s revenue comes from online orders. The company said it expects revenues to grow eight to 10 per cent over the next three years.

The deal also marks an end to Supreme’s relationship with the Carlyle Group, which acquired a majority stake in the brand for $500 million in 2017 that valued it at $1 billion.

Supreme entered into collaborations with Levis and Louis Vuitton with Carlyle’s backing.

“In the trends we see today, in this Covid environment of casualization and consumers really looking to and engaging with authentic brands with great meaning, that positions Supreme to be very strong,” Rendle said.

VF Corp financial officer Scott Roe said: “We see no upside limitation on the brand. We see a clear line of sight to a billion dollars.

“Could it be bigger over time? Sure. But we’re also not trying to get ahead of ourselves. This very careful growth has … worked really well for the brand, and we’re not trying to push it.”

Supreme’s first store opened in downtown New York in 1989, an has since expanded to 12 global locations.

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