The North Face parent VF Corp. acquires Supreme, shares jump

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VF Corp. said Monday that it has acquired streetwear brand Supreme. Details about the deal, including the value of the transaction, weren’t immediately available. VF Corp. is hosting an investor presentation to discuss the deal Monday morning. Current Supreme investors, The Carlyle Group and Goode Partners, are selling their stakes in the Supreme brand. Supreme founder James Jebbia and the senior leadership team will remain on board at the company’s New York City headquarters. Supreme, which is known for putting its red block logo on all manner of merchandise and drawing lines of customers for “drops” of its new merchandise, has partnered with VF Corp. brands in the past, including The North Face, Vans and Timberland. VF Corp. says the brand offers a $1 billion global opportunity. Supreme is expected to be “modestly accretive” to VF Corp. in fiscal 2021, and contribute at least $500 million in revenue and 20 cents of adjusted EPS is fiscal 2022. The deal is expected to close in 2020. VF Corp. stock jumped 8% in Monday premarket trading, though the stock is down 29.8% for the year to date. The S&P 500 index has gained 8.6% for 2020 so far.
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