VF Corporation to acquire performance label Icebreaker
VF Corporation announced on Thursday that it has signed a definitive purchase agreement to acquire Icebreaker Holdings, Ltd. The terms of the agreement were not disclosed.
Founded by Jeremy Moon in 1995, Icebreaker produces apparel for men, women and children crafted in plant-based and recycled fibers, as well as Merino wool sourced directly from Merino farms in New Zealand. The New Zealand-based brand, which was founded on the belief that “nature always has a better solution,” generated approximately $150 million in revenue and is sold in 47 countries through wholesale, branded retail and e-commerce.
The transaction between VF and Icebreaker is to be completed in early 2018, and the addition of Icebreaker will be immediately accretive to earnings per share.
“Bringing the Icebreaker brand into the VF portfolio is a special opportunity,” said Chairman, VF Corp Chairman, President and CEO Steve Rendle. “Together, the SmartWool and Icebreaker brands create an advantaged position for VF as a leader in the growing and underpenetrated natural fiber category.”
Prior to signing the purchase agreement with Icebreaker, VF Corp acquired workwear company Dickies for $820 million. The company forecasts that, with the addition Dickies, its annual workwear revenues will reach $1.7 billion.
VF in October reported a 5% increase in revenue to $3.5 billion, led by its action sports division, which increased 8% due to Vans’ increase of 28%.
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