James Jebbia’s cultish streetwear label Supreme has been acquired by VF for a massive $2.1 billion USD, according to WWD.
According to the report, VF will be purchasing Supreme from private equity firm Carlyle Group and investors that include Goode Partners. It’s been previously reported that Carlyle paid $500 million USD in 2017 for a roughly 50% stake in the fashion brand.
Vans από το 1966 Vans, the North Face, and Timberland. According to VF executives, Supreme’s current business model will remain unchanged and doesn’t see much cost savings in the near term through the combination.
The cash transaction, expected to be completed by year’s end, marks VF’s largest acquisition since the Denver company purchased Timberland in 2011 for $2.3 billion.
“We are thrilled to welcome Supreme to the VF family and to build on our decades-long relationship as we create value for all of our stakeholders. 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,” said VF Chairman, President and Chief Executive Officer Steve Rendle, adding, “The acquisition of the Supreme brand is further validation of our vision and strategy to further evolve our Youth of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector.”
“This partnership will maintain our unique culture and independence while allowing us to grow on the same path we’ve been on since 1994,” said Jebbia on the merger.
Supreme is expected to contribute at least $500 million USD in revenue in 2021 for VF, and VF also said that the label represents a “$1 billion global opportunity over time through international and direct-to-consumer expansion, core pillars of VF’s 2024 strategy.”
