VF Corporation – owners of Timberland, the North Face, and Vans, have come to an agreement to purchase cult New York skate brand Supreme in a US$2.1 billion cash deal.
James Jebbia – the founder will remain with the brand.
In 2017, the Carlyle Group purchased a 50% stake in Supreme for US$500 million, giving the Supreme brand a total valuation of US$1 billion. The investment initially brought some public scrutiny as the Carlyle Groups’ investment portfolio extended to hardware distributors, and combat fighter jet production groups – a controversial sector for many, but this did not hinder Supreme’s growth. HypeBeast noted that the Carlyle Group strategy often involved 4 – 5 year investments and that Supreme was never intended to be a long-term legacy investment.
This year, VF Corporation will be purchasing the whole Carlyle Group stake, as well as other investors giving Supreme a new valuation, and a stronger connection to brands it already has strong ties to. In recent years Supreme has collaborated with Vans, Timberland, and the North Face, the latter which is perhaps the most iconic. Supreme being brought under new ownership will allow for more collaborations and more dynamism.
Bloomberg also states that VF Corporation expects Supreme to contribute at least US$500 million of revenue to the group, and an increased $0.20 adjusted EPS. The group feels confident with adding Supreme to their roster with the CFO stating that “this is also a consumer space we know quite a bit about, we’ve got about $3 billion in sales already from that street-inspired intersection between active-athletic and streetwear total addressable market. We do know something about that space.”
Founded in 1899, VF Corporation is one of the world’s largest apparel, footwear, and accessories companies connecting people to the lifestyles, activities, and experiences they cherish most through a family of iconic outdoor, active, and workwear brands including Vans, The North Face, Timberland and Dickies. Our purpose is to power movements of sustainable and active lifestyles for the betterment of people and our planet. We connect this purpose with a relentless drive to succeed to create value for all stakeholders and use our company as a force for good. For more information, please visit vfc.com.
In April 1994, Supreme opened its doors on Lafayette Street in downtown Manhattan and became the home of New York City skate culture. At its core was a group of neighborhood kids, New York skaters and local artists who became the store’s staff, crew and customers. While it developed into a downtown institution, Supreme established itself as a brand known for its quality, style, and authenticity. Over 25 years, the Supreme brand has expanded from its New York City origins into a global community