Katie Smith

Ten facts about takeover target Timberland

By | 13 June 2011

VF Corporation has agreed a deal to acquire Timberland for US$2bn.

VF Corporation has agreed a deal to acquire Timberland for US$2bn.

Following the news of fashion group VF Corporation striking a deal to buy outdoor apparel and footwear firm Timberland for US$2bn, just-style looks into the history of the company, financial performance and its products and brands.

  1. Timberland is a global footwear and apparel company with expected 2011 revenues of $1.6bn, over half of which are generated internationally. For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis. The firm's net income for 2010 was $96.6m, an increase of 70.6% over the prior year. "Our results this quarter are the culmination of disciplined focus on our operating model and targeted investments in our brand," Jeffrey B. Swartz said at the time. 
  2. The company has 5,600 employees around the world, operating stores throughout North America, Europe, Asia, Latin America, South Africa and the Middle East. Its world headquarters are in Stratham, New Hampshire, US. In 1986, the first Timberland store opened in Newport, Rhode Island. The company's first European store opened on New Bond Street in London in 1990. In 1980, Timberland footwear was introduced into Italy, its first international market. 
  3. Sidney Swartz is chairman of Timberland. Jeffrey Swartz is president and CEO of the company. Mike Harrison is chief brand officer. 
  4. In 1952 Nathan Swartz bought a half interest in the Abington Shoe Co located in Abington, Massachusetts. In 1955, he bought the remaining interest and in 1973 the Swartz family developed the Timberland brand name. Five years later, the company name changed to The Timberland Co. In the years following, Timberland introduced women's apparel in 1990 and in 1997, introduced apparel for children. 
  5. Timberland designs, develops and markets footwear, apparel and accessories products for men, women and children under the Timberland, Timberland PRO, Timberland Boot Company, SmartWool and howies brands. SmartWool is a mountain-based apparel brand that aims to provide comfort through products designed for active outdoor consumers. Its key product categories are next-to-skin baselayers, thermal midlayers and performance socks. The merino wool fibre used in SmartWool products has high moisture management and tempertaure control and is odor free. 
  6. Timberland's Earthkeepers brand focuses the environment by using renewable energy in the company's facilities. Earthkeeping designed by the firm to be a way of reducing drought, fighting global warming and preventing desertification. The footwear brand products have linings made with recycled plastic bottles, recycled rubber soles and organic cotton made with the environment in mind. 
  7. The company launched its first advertising campaign in 1976. Timberland launched its "Give Racism the Boot" awareness campaign supporting diversity and standing up against oppression internationally in 1992. Two years later, the company launched its Model People print campaign. Timberland launched its Beliefs print campaign in 1998, which reflected the company's philosophy of "pulling on your boots and making a difference." 
  8. Last October, Timberland announced that the company's Deer Park, NY retail store location was awarded Leadership in Energy and Environmental Design (LEED) for Commercial Interiors (CI) Silver certification. The New York store was Timberland's third retail store to be certified by the US Green Building Council (USGBC). In 2008 Timberland achieved LEED Gold certification for the company's Peabody, MA retail store location and LEED Silver for its Salem, NH retail store. 
  9. Timberland's footwear collection for men include men's Earthkeepers boot, men's City Adventure Moc Toe Oxford, men's Classic 2-Eye Boat shoe and men's Earthkeepers City Buckle Thong Sandal. Prices range from $30.00 to $195.00. Men's and women's clothing coats, tops, jackets, shorts and trousers are priced from $19.99 to $598.00. Timberland's accessories collection includes belts and wallets, sunglasses, watches, handbags, hats and scarves and socks. Children's footwear retails from $25.00. 
  10. Today's acquisition will see Timberland join a vast portfolio of brands owned by VF Corporation, including The North Face, Vans, JanSport, Reef, Lucy, Eastpak, Napapijri and Eagle Creek. VF said it will benefit from Timberland's rugged outdoor footwear expertise, international penetration in markets such as Japan, and leadership position in sustainability. VF narrowed down Timberland from 50 other apparel companies it had considered buying this year, as it looks to create an outdoor and action sports powerhouse with annual revenues worth $10bn.

Click here to read just-style latest research report on the outdoor apparel sector.

Sectors: Apparel, Footwear, Retail

Companies: Timberland, VF Corporation

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VF snaps up Timberland

Fashion group VF Corporation has agreed a deal to buy outdoor apparel and footwear firm Timberland for US$2bn. The US brand will remain headquartered in Stratham, New Hampshire.

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