According to a report on Monday, VF Corp. Vans branded shoe manufacturer intends to buy the well-known clothing company Supreme for $ 2.1 billion!
VF Corp also ‘overshadowed’ the brand The North Face and Timberland also offered another $ 300 million in the firm’s purchase, depending on certain achievements after the deal was made.
Following the news, VF Corp shares jumped around 13% to $ 78.94 during yesterday afternoon's trading session.
The brand is well known for its limited product range, ranging from hoodies to burner phones. So, it is not surprising that Supreme products are sold at a relatively expensive price compared to other brands such as Vans and Nike.
According to records, Supreme Europe's business has generated a profit of up to 110 million Pounds ($ 130 million), although only through two stores and capital gains but profits generated through spending benefits from other streetwear brands such as Vans, Abercrombie & Fitch and even luxury brands Gucci.
Supreme also collaborated with other brand lines including Louis Vuitton, Nike, Levi and Vans, resulting in the firm making a 60% profit through its online business.
VF Corp hopes its business with Supreme will help in boosting the e-commerce business that is a priority for clothing and footwear manufacturers due to the COVID-19 pandemic.
The deal is expected to be completed by the end of 2020, with the expectation of contributing at least $ 500 million in profits and 20 sen revenue per share by fiscal 2022.
