- VF, which owns Vans, The North Face, and Timberland, is adding fashion brand Supreme to its portfolio, it announced Monday.
- The companies expect the $2.1 billion deal to be completed in late 2020.
- Supreme’s current investors, The Carlyle Group and Goode Partners, are selling their stakes, VF said.
- VF expects Supreme to contribute at least $500 million of revenue in the 2022 fiscal year.
- Supreme was founded in New York City in 1994, and has since opened stores in Asia and Europe. Its lines are also carried by other retailers.
- Visit Business Insider’s homepage for more stories.
US apparel company VF is buying fashion brand Supreme for $2.1 billion, it announced Monday.
Supreme’s current investors, The Carlyle Group and Goode Partners, are selling their stakes, VF said.
New York City-based Supreme has worked with VF in the past, and has collaborated with VF-owned brands Vans, The North Face, and Timberland.
The companies expect the deal to be completed in late 2020. VF expects Supreme to contribute at least $500 million of revenue in the 2022 fiscal year, it said.
It would make an additional payment of up to $300 million, subject to certain milestones being met after the deal, it said.
Supreme and VF already have similar customer bases, VF said in a press release.
The deal also means that streetwear brand Supreme can access VF’s global supply chain, international platforms, digital functions, and consumer knowledge, it said.
Read more: eBay has been ‘asleep at the wheel’ in the sneaker category. Now, an exec explains how the platform will overtake competitors like StockX and GOAT
Despite the acquisition, Supreme will continue to collaborate with brands outside of the VF portfolio, VF said.
“VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth,” VF’s CEO Steve Rendle said.
Supreme was founded in 1994 to target the skateboarding and hip-hop youth cultures, and has since become known globally for its distinctive bright red logo.
The brand sells clothes, accessories, footwear, and skateboards.
The company owns 11 stores, including in Asia and Europe, but also sells through other retailers and via its own online store.