Supreme has found its new home at VF Corp.
The Denver giant said it signed a definitive merger agreement to buy the New York skate-based company, which sits at the white hot center of the streetwear world.
Founder James Jebbia and the rest of Supreme’s leadership team will stay at the brand and remain based in New York City, where the company got its start as a skate shop on Lafayette Street.
VF said the business, which is understood to be wildly profitable, will be “accretive” to its adjusted earnings per share in the fiscal year that ends in April. And then next year, the company is expected to add at least $500 million in revenues and 20 cents of adjusted eps to VF’s take.
Steve Rendle, VF’s chairman, president and chief executive officer, said: “VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth. 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.”
Jebbia added: “We are proud to join VF, a world-class company that is home to great brands we’ve worked with for years, including The North Face, Vans, and Timberland. This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”
The deal is expected to be completed this calendar year and will see The Carlyle Group and Goode Partners sell their stakes.
Carlyle made waves in 2017 when it acquired a 50 percent stake in the company at a $1 billion valuation.
VF will give additional details on the deal on a conference call with investors this morning.
This story will be updated.
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