VF Corp to sell nine workwear brands
VF Corporation, the Denver, Colorado-based owner of brands including Vans, The North Face and Timberland, announced on Wednesday that it has entered into a definitive agreement to sell the occupational portion of its work segment to a subsidiary of Redwood Capital Investments, LLC, a diversified holding company.
The occupational workwear portion of VF’s Work segment includes Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small. The sale does not include the Dickies and Timberland PRO brands.
“The sale of our occupational work brands reflects our continued focus on transforming VF into a more consumer-minded and retail-centric enterprise while further simplifying our portfolio and operating model,” said VF’s chairman, president and chief executive officer, Steve Rendle
“We are pleased to have reached this agreement with Redwood Capital Investments. They are an ideal owner to guide these brands and businesses into their next phase of growth.”
The transaction is expected to close in the first quarter of fiscal 2022 and is subject to customary closing conditions and regulatory approvals. Terms of the agreement were not disclosed.
While the group is selling brands, it has done some acquisitions in recent years as well including that of cult New York-based streetwear label Supreme, which it most recently acquired in November. Its stable of brands was also shook up in 2018 when it sold its classic denim brands Wrangler and Lee.
VF reported net income of $347.2 million for the third quarter ended December 26, 2020, down 25 percent compared to $465 million in the prior-year period.
While the company’s active and outdoor segment fell 9 and 5 percent respectively, VF’s work segment saw revenues rise 8 percent, led by a 9 percent increase at the Dickies brand.
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