US: VF to acquire Timberland for $2bn
By Joe Ayling | 13 June 2011
 |
Timberland is to become part of the VF stable of brands |
Fashion group VF Corporation has agreed a deal to buy outdoor apparel and footwear firm Timberland for US$2bn.
VF said the acquisition was expected to add $700m to its 2011 revenues, and to be completed by the third quarter. Its transaction will be financed through a combination of cash on hand, commercial paper and term debt.
Timberland will become part of VF's Outdoor & Action Sports coalition but remain headquartered in Stratham, New Hampshire, VF added.
In an initial statement this afternoon (13 June), VF said it was targeting 10% annual turnover growth for the Timberland brand.
It added that the brand would leverage its platforms in Europe, Asia and Latin America, and boost e-commerce operations.
VF, whose portfolio of brands include The North Face, Lee and Wrangler, also announced plans to "aggressively" grow Timberland's women's wear business.
Eric Wiseman, chairman and chief executive officer of VF, said: "We believe the unique rugged outdoor positioning of the Timberland brand will perfectly complement the premium, technical positioning of The North Face brand, while the Smartwool brand will provide us with a leadership position in a new category.
"This acquisition will continue the transformation of VF's portfolio, propelling VF's Outdoor & Action Sports businesses to 50% of total revenues."
Jeffrey Swartz, president and chief executive officer of Timberland, said: "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."
The transaction is subject to customary conditions, including receipt of Timberland stockholder approval and applicable regulatory approvals.
Sectors: Apparel, Finance, Footwear
Companies: Timberland, VF Corporation
View next/previous articles
13 Jun 2011 -
13 Jun 2011 -
Currently reading -
US: VF to acquire Timberland for $2bn
13 Jun 2011 -
13 Jun 2011 -
Related research
Performance apparel markets: business update, 3rd quarter 2011
This report provides information, analysis and insight on: acquisitions, divestments and mergers; brand development; corporate social responsibility (CSR); events; financial results; joint ventures, cooperation, licensing and distribution; legal issu...
The footwear market reached a total of $46.5 billion in estimated sales for 2010, showing a seemingly surprising increase in sales in spite of the continuing economic crisis in the U.S. Mintel’s research reveals how the footwear market has withstood ...
Profile of Schoeller Group: a creative producer of smart and sustainable functional fabrics
Identifies the company’s innovative approach to textile design and strict environmental policy. Schoeller Group is considered to be one of Europe’s most innovative fabric manufacturers and has a reputation for developing “smart” textile technologies,...
Related articles
US: WRAP CEO Steve Jesseph to retire
Steve Jesseph, the CEO of social and environmental training and certification group Worldwide Responsible Accredited Production (WRAP), is to retire at the end the year.
Read more on this hot issue
VF snaps up TimberlandFashion 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.
There are currently no comments on this article
Be the first to comment on this article