VF Corporation, known for its portfolio of popular brands, has decided to divest its stake in Supreme, a renowned streetwear label.
- The transaction with EssilorLuxottica, a leader in the eyewear industry, is set at a significant $1.5 billion.
- VF Corp acquired Supreme in 2020, reflecting a strategic shift in their business ventures.
- The completion of the sale is anticipated by the end of 2024, pending regulatory procedures.
- Supreme, with 17 strategic store locations across the globe, marks a pivotal addition to EssilorLuxottica’s diverse brand offerings.
In a bold move within the fashion industry, VF Corporation has announced its decision to sell Supreme, a highly influential streetwear brand, to EssilorLuxottica. The deal, valued at an impressive $1.5 billion, signifies a substantial financial exchange between the two major corporations. This transaction underscores EssilorLuxottica’s expanding influence beyond eyewear into the broader lifestyle market.
VF Corp originally acquired Supreme from The Carlyle Group and Goode Partners in 2020 for approximately $2.1 billion, showcasing its commitment to diversify and strengthen its brand portfolio. This acquisition was part of VF Corp’s broader strategy to invest in high-growth and influential brands.
The sale to EssilorLuxottica is expected to be finalized by the end of 2024. This timeline is contingent upon the satisfaction of customary closing conditions and the receipt of necessary regulatory approvals, which are crucial steps in corporate acquisitions of this magnitude.
Supreme currently operates 17 stores strategically located in key markets across the United States, Asia, and Europe, including a prominent location in London’s Soho. The brand’s geographical footprint offers EssilorLuxottica a valuable opportunity to leverage its existing infrastructure and expand its market reach in streetwear.
The alignment of Supreme with EssilorLuxottica’s existing brand offerings could create synergetic opportunities, potentially enhancing their market position and competitive edge in the fashion industry.
This transaction highlights the evolving strategies of major corporations seeking to optimize their brand portfolios in dynamic global markets.
