VF Corporation embraces streetwear culture with a bold acquisition!
- VF Corporation acquires Supreme for $2.1 billion.
- Current investors Goode Partners and Carlyle Group are selling their stakes.
- Expected to contribute at least $500 million in revenue and $0.20 in adjusted EPS for fiscal year 2022.
- Morgan Stanley facilitated the transaction; Davis Polk and Wardwell LLP provided legal advice.
- VF’s CEO emphasizes the importance of Supreme’s heritage and future growth potential.
VF Corporation has made a significant move in the fashion industry by acquiring the popular streetwear brand Supreme for a staggering $2.1 billion. This acquisition comes as part of a definitive merger agreement, with current investors Goode Partners and Carlyle Group divesting their stakes in Supreme. The deal aligns with VF’s ambitious growth strategy and is projected to add at least $500 million in revenue and $0.20 to adjusted earnings per share (EPS) for the fiscal year 2022. Morgan Stanley played a key role in facilitating this transaction, while legal advice was provided by Davis Polk and Wardwell LLP. Steve Rendle, the chairman, president, and CEO of VF, expressed excitement about welcoming Supreme into the VF family, highlighting the brand’s authentic heritage and the potential for sustainable long-term growth. He noted that this acquisition validates VF’s vision to evolve its portfolio in line with market opportunities in the apparel and footwear sector. Furthermore, the Supreme brand is expected to enhance VF’s digital transformation and contribute significantly to shareholder returns and long-term value creation.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the acquisition of Supreme by VF Corporation, the involvement of investors, expected revenue contribution, legal advisors, and the CEO’s perspective on the deal.
Noise Level: 3
Noise Justification: The article provides relevant information about the acquisition of Supreme by VF Corporation and quotes from Steve Rendle, CEO of VF. It also mentions the expected revenue contribution and the role of Morgan Stanley in the transaction. However, it lacks a deeper analysis or exploration of the implications of this acquisition on the apparel and footwear sector or the industry as a whole.
Financial Relevance: Yes
Financial Markets Impacted: VF Corporation, Supreme, Goode Partners, Carlyle Group
Financial Rating Justification: The article discusses a merger agreement between VF Corporation and streetwear brand Supreme, which is expected to contribute significantly to revenue and EPS. It also mentions the involvement of financial institutions like Morgan Stanley and legal advisor Davis Polk and Wardwell LLP. This indicates that it pertains to financial topics and impacts the companies involved.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
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