VF Corporation has struck an agreement to sell the occupational portion of its work segment as part of its efforts to transform the group into a more retail-centric enterprise while simplifying its portfolio.
The occupational workwear portion includes the Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small brands.
The sale to a subsidiary of Redwood Capital Investments, LLC, a diversified holding company, does not include the Dickies and Timberland PRO brands.
“The sale of our occupational work brands reflects our continued focus on transforming VF into a more consumer-minded and retail-centric enterprise while further simplifying our portfolio and operating model,” says VF’s chairman, president and CEO, Steve Rendle. “We are pleased to have reached this agreement with Redwood Capital Investments. They are an ideal owner to guide these brands and businesses into their next phase of growth.”
The transaction, which is expected to close in the first quarter of fiscal 2022, is subject to customary closing conditions and regulatory approvals for a closing to occur.
Terms of the agreement were not disclosed.
The news comes after VF said in January of last year it is to look at strategic alternatives for the occupational portion of its work segment as part of ongoing efforts to focus on its higher-growth, consumer-focused brands.
The move followed a strategic plan outlined by VF in September 2019 to optimise its portfolio and focus on its biggest brands. VF Corp is one of the world’s largest apparel, footwear and accessories companies and boasts a diverse portfolio of brands, including three – Vans, The North Face, Timberland – whose annual revenues exceed $1bn.