Apparel giant VF Corp is amplifying its focus on high-performance apparel made of natural fibres with the purchase of New Zealand based ethical and sustainable performance apparel brand Icebreaker.
Greensboro, North Carolina based VF Corp, whose brands include The North Face and Timberland, yesterday (2 November) said it had acquired privately-held Icebreaker for an undisclosed sum.
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The Wellington-based apparel brand bases its entire collection on New Zealand-sourced merino wool, cellulosic-based textile fibres and recycled raw materials from non-synthetic sources.
“Bringing the Icebreaker brand into the VF portfolio is a special opportunity,” says VF Corp CEO, Steve Rendle. “Its natural fibre focus is an ideal complement to our SmartWool brand, which also features Merino in its clothing and accessories. Together, the SmartWool and Icebreaker brands create an advantaged position for VF as a leader in the growing and under-penetrated natural fibre category.
“We will have unmatched capabilities that will strengthen our ability to create innovative and sustainable natural fibre products across our brand portfolio, especially in VF’s outdoor and workwear brands.”
Icebreaker has 340 full-time employees and its products are sold in 47 countries through wholesale channels and branded retail and e-commerce platforms. On a trailing 12-month basis, the company generated around US$150m of revenue in its last fiscal year.
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By GlobalDataThe transaction is expected to be completed early in 2018 and the addition of the Icebreaker brand to VF’s portfolio is expected to be immediately accretive to earnings per share.
Jeremy Moon, founder of Icebreaker Holdings, said of the deal: “Our partnership with VF provides us with the largest platform in the world to tell our story, access new markets and reach new consumers at an accelerated pace. This is a once-in-a-lifetime opportunity for our global Icebreaker brand team and for our wool suppliers to introduce a whole new universe of consumers to the benefits of sustainably farmed, ethically sourced, New Zealand Merino wool.”
Icebreaker will be the second acquisition for VF Corp this year. In August, the company bought Williamson-Dickie Mfg Co – owner of brands including Dickies – in a deal worth around US$820m.
VF Corporation to buy Williamson-Dickie Mfg for $820m
