July 15, 2024

DealBook: VF Corporation to Buy Timberland

The VF Corporation said on Monday that it would acquire Timberland in a $2 billion deal that would add to the apparel company’s extensive collection of brands like the North Face, Jansport, Nautica and Vans.

The deal, at $43 a share, represents a more than 40 percent premium to Timberland’s closing price on Friday.

With the addition of Timberland, VF’s sports group will account for 50 percent of the company’s overall sales. Timberland is expected to notch revenue of $1.6 billion this year, with the majority coming from outside the United States. VF estimates that it can bolster sales at Timberland by some 10 percent a year, in part by growing the international business and women’s footwear.

“Timberland is proud of its rich heritage, its track record of success and its reputation as a responsible and environmentally conscious global citizen, all of which will be preserved and enhanced by becoming part of the VF family of brands,” Jeffrey Swartz, chief executive of Timberland, said in a statement. “VF is known for its ability to acquire and grow authentic outdoor brands, while protecting a brand’s unique culture and DNA.”

VF expects the deal will increase its earnings per share by 25 cents in 2011 and 75 cents in 2012. The acquisition, which has been approved by the boards of both companies, is expected to close in the third quarter.

“This will be a winning combination, leveraging VF’s international and direct-to-consumer platforms to drive growth in the Timberland and Smartwool brands globally,” Eric Wiseman, chief executive of VF, said in a statement.

Article source: http://feeds.nytimes.com/click.phdo?i=4a1ba2848aee3c9f5ae39d3d817a1d52

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