VF Corporation, the parent company of many apparel and footwear brands such as The North Face, Vans, and Timberland, is gearing up to add Supreme to its portfolio.
Announced today by both VF and Supreme, the deal will see VF acquiring 100% of Supreme by the end of the year for an estimated $2.1 billion, with current investors Carlyle and Goode Partners selling their stakes in the company. Founder James Jebbia and the rest of Supreme’s leadership team will stay at the brand and remain based in New York City.
“We are proud to join VF, a world-class company that is home to great brands we’ve worked with for years, including The North Face®, Vans®, and Timberland®,” says Jebbia. “This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”
Don’t expect any drastic changes to Supreme’s M.O., as it sounds like VF Corp. will let the brand continue growing at the rate its been growing these past few years. Supreme won’t be sold at your local mall anytime soon, but expect the brand to open more locations and steadily increase production to increase revenue. Supreme’s annual revenue has increased from about $200 million in 2016 to over $500 million today, and VF Corp is aiming at a 8 to 10 percent annual growth. VF predicts Supreme’s revenue to increase to over $1 billion over time.
“We talk about a light-touch integration with this business because it’s very successful, operating at a very high level today,” says Steve Rendle, VF’s chairman, president and chief executive officer. “We’ll take our time to get to know each other. This brand will continue to operate as it always has, we do not look to come in and make any changes. We’re here to help, support and enable.”