VF Corp. has added a hot streetwear brand with a devoted following to its portfolio.
The parent company of Timberland, The North Face, Vans and Dickies has completed its $2.1 billion acquisition of Supreme. With the deal now wrapped up, Supreme has become a wholly-owned subsidiary of VF.
Supreme was founded in 1994 as a skatewear brand with a store in downtown Manhattan and has since evolved into a global business that sells apparel, accessories and footwear under its namesake brand through direct-to-consumer channels, primarily digital.
“The acquisition of the Supreme brand accelerates VF’s consumer-minded, retail-centric, hyper-digital business model transformation and builds on a long-standing relationship between Supreme and VF, with the Supreme brand being a regular collaborator with VF’s Vans, The North Face and Timberland brands,” VF stated in a release.
Supreme’s founder, James Jebbia, and the senior leadership team will remain with the company, headquartered in New York City. In a statement from November when the deal was announced, Jebbia stressed that Supreme will maintain its independence.
“This partnership will maintain our unique culture and independence while allowing us to grow on the same path we’ve been on since 1994,” he said.
Supreme is expected to be “modestly accretive” to VF’s revenue and adjusted earnings per share in fiscal 2021, according to VF. The brand is expected to contribute at least $500 million of revenue and $0.20 of adjusted EPS in fiscal 2022.