EssilorLuxottica to Acquire Supreme® from VF Corporation
17 Juli 2024 - 8:00AM
UK Regulatory
EssilorLuxottica to Acquire Supreme® from VF Corporation
EssilorLuxottica to Acquire
Supreme®
from VF Corporation
Paris, France and Denver, CO (17 July
2024 – 8am CEST) - EssilorLuxottica, a global leader in
the optical industry, and VF Corporation (NYSE: VFC), a global
leader in branded lifestyle apparel, footwear and accessories,
today announced that they have entered into a definitive agreement
for EssilorLuxottica to acquire the
Supreme® brand from VF for $1.5
billion in cash.
Francesco Milleri, Chairman and Chief Executive
Officer and Paul du Saillant, Deputy Chief Executive Officer at
EssilorLuxottica said: “We see an incredible opportunity in
bringing an iconic brand like Supreme®
into our Company. It perfectly aligns with our innovation and
development journey, offering us a direct connection to new
audiences, languages and creativity. With its unique brand
identity, fully-direct commercial approach and customer experience
– a model we will work to preserve –
Supreme® will have its own space
within our house brand portfolio and complement our licensed
portfolio as well. They will be well-positioned to leverage our
Group’s expertise, capabilities, and operating platform.”
Bracken Darrell, President and Chief Executive
Officer at VF said, “Under VF,
Supreme® expanded its presence in the
key markets of China and South Korea and has returned to delivering
strong growth. However, given the brand’s distinct business model
and VF’s integrated model, our strategic portfolio review concluded
there are limited synergies between
Supreme® and VF, making a sale a
natural next step. Alongside the other notable brands in
EssilorLuxottica’s portfolio, Supreme®
and its talented team will be well-positioned for continued
success.” Darrell continued, “While we will always look to adjust
the VF portfolio from time to time, this transaction gives us
increased balance sheet flexibility. It also supports our overall
program to better position the company for long term growth and
more normalized debt levels.”
Supreme® Founder
James Jebbia commented, “In EssilorLuxottica, we have a unique
partner that understands that we are at our best when we stay true
to the brand and continue to operate and grow as we have for the
past 30 years. This move lets us focus on the brand, our products,
and our customers, while setting us up for long-term
success.”
The transaction is expected to close by the end
of CY2024, subject to customary closing conditions and regulatory
approvals. The Supreme® brand runs a
digital-first business and 17 stores in the U.S., Asia and Europe.
The sale of Supreme® is expected to be
dilutive to VF’s earnings per share in fiscal 2025.
J.P. Morgan and Latham and Watkins are serving
as exclusive financial and legal advisors to EssilorLuxottica on
the transaction, respectively. Goldman Sachs & Co. LLC is
serving as lead financial advisor and UBS Investment Bank is
serving as financial advisor to VF. Davis Polk & Wardwell LLP
is acting as legal advisor to VF.
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