VF Corp completes acquisition of Supreme
In the days between Christmas and the New Year, Supreme officially joined the VF Corp portfolio. The American conglomerate, which already owns The North Face, Timberland, Vans and Dickies, announced that it had completed the preliminary stages of the high-profile acquisition on December 28, paying $2.1 billion for the cult New York-based streetwear label.
Founded by James Jebbia in 1994, Supreme was initially a store on the corner of Lafayette Street and Prince Street, in NYC. With its acquisition by VF Corp, the label will be joining a portfolio made up of brands with which it has been collaborating for a number of years.
In documents submitted to the United States Securities and Exchange Commission, Denver, Colorado-based VF further explained that, if certain post-closing milestones are met, the company could pay up to another $300 million for the brand.
According to the group, which will wrap up its fiscal year at the end of March 2021, Supreme's contribution to the current year is expected to be modest. As of the next fiscal year, however, the company predicts that the brand will contribute around $500 million to its annual revenues, with further growth expected for the following years. In fiscal 2020, which closed in March 2020, the American group reported revenues of $10.49 billion.
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