EssilorLuxottica to acquire Supreme from VF Corporation
EssilorLuxottica, a global leader in the optical industry, and VF Corporation, a global leader in branded lifestyle apparel, footwear and accessories, today announced that they have entered into a definitive agreement for EssilorLuxottica to acquire the Supremebrand from VF for $1.5 billion in cash.
Leveraging expertise and capabilities
Francesco Milleri, Chairman and Chief Executive Officer and Paul du Saillant, Deputy Chief Executive Officer at EssilorLuxottica said: “We see an incredible opportunity in bringing an iconic brand like Supreme into our Company. It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity. With its unique brand identity, fully-direct commercial approach and customer experience – a model we will work to preserve – Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well. They will be well-positioned to leverage our Group’s expertise, capabilities, and operating platform.“
Expanding key markets
Bracken Darrell, President and Chief Executive Officer at VF said, “Under VF, Supremeexpanded its presence in the key markets of China and South Korea and has returned to delivering strong growth. However, given the brand’s distinct business model and VF’s integrated model, our strategic portfolio review concluded there are limited synergies between Supreme and VF, making a sale a natural next step. Alongside the other notable brands in EssilorLuxottica’s portfolio, Supreme and its talented team will be well-positioned for continued success.” Darrell continued, “While we will always look to adjust the VF portfolio from time to time, this transaction gives us increased balance sheet flexibility. It also supports our overall program to better position the company for long term growth and more normalized debt levels.”