Timberland offer illustrates M&A uptick

By: Joe Ayling - 20 June 2011 17:06

Last week saw more M&A activity in the apparel sector with news thatVF Corporation is to acquire outdoor apparel giant Timberland forUS$2bn.

Timberland, which will remain headquartered in Stratham, NewHampshire, will slot into an expanding VF outdoor portfolio that alsoincludes The North Face.

VF hopes that the deal, which is still subject to conditions, willoffer a swift return on investment through e-commerce andinternational synergies, together with top-line sales from theTimberland and Smartwool brands.

It represents the largest deal in a flurry of recent buyout activityin the industry, which has also seen Oxford Apparel, Jimmy Choo andKurt Geiger snapped up in the past few months.

US: VF to acquire Timberland for $2bn

Ten facts about takeover target Timberland

Also in the news last week was value fashion chain Primark, which wasawarded an apology by the BBC over certain footage the media outlethad gathered for its Panorama documentary 'Primark: On the Rack'.

Footage of three boys testing the stitching of Primark garments inBangalore was likely to have been fake, concluded the BBC Trust'sEditorial Standards Committee (ESC)

Primark said it had been vindicated after three years and severalinvestigations into the 2008 documentary.

UK: Primark exposé footage ruled "fake"

Meanwhile, there were comings and goings at the top of US fashionfirms JC Penney, Levi Strauss and Collective Brands last week.

The president and CEO of Levi Strauss, John Anderson, is to retireeffective 1 September, while Collective Brands' longstanding bossMatthew Rubel has resigned, and JC Penney has appointed Apple retailsupremo Ron Johnson as its new CEO.

US: JC Penney names Johnson as next CEO

US: Levi Strauss CEO to retire US: Collective Brands chief Rubel steps down