American VF Corporation has agreed to purchase New York streetwear brand Supreme.
At the international fashion market, a significant deal was made: the U.S. VF Corporation has agreed to buy Supreme's iconic New York streetwear brand.
VF Corporation is a critical player in the market with more than 300 international fashion and footwear brands. Its portfolio includes the world-famous Vans, The North Face, and Timberland brands. The company's revenue in 2019 is estimated at 13.8 billion dollars, more than 50 thousand employees.
According to CNBC, the deal to acquire one of the most popular streetwear brands Supreme will be completed by the end of 2020. It is expected that the purchase of VF Corp. will add about $ 500 million in revenue in fiscal 2022, adjusted earnings per share of 20 cents.
Supreme brand was founded by James Jebbia in April 1994, when the first store was opened in Manhattan, New York. The brand is working in the luxury price segment: for example, a T-shirt with a print stands on the platform farfetch.com, about $ 400, and a hoodie - $ 1000. In autumn 2017, the company's founder sold more than 50% of its business to the investment fund The Carlyle Group. Experts reported that the deal amount was about $500 million.