VF Corporation has announced a strategic move, selling Supreme to EssilorLuxottica for $1.5 billion.
- This transaction is a definitive agreement between VF Corp and EssilorLuxottica, pending customary conditions.
- Supreme’s acquisition by VF Corp in 2020 was part of a significant deal with The Carlyle Group and Goode Partners.
- The transaction, valued at approximately £1.15 billion, is expected to conclude by the year’s end.
- Supreme operates 17 international stores, enhancing its global streetwear footprint.
VF Corporation, known for its extensive portfolio including popular brands like Vans and The North Face, has formally declared its intent to sell the high-profile streetwear brand, Supreme, to eyewear conglomerate EssilorLuxottica. The transaction, valued at $1.5 billion (£1.15 billion), represents a strategic divestment, allowing VF Corp to potentially streamline its brand portfolio and focus resources more effectively.
This strategic divestment comes merely four years after VF Corp initially acquired Supreme in a $2.1 billion (£1.6 billion) transaction involving prominent private equity firms The Carlyle Group and Goode Partners. Such a move aligns with VF Corp’s adaptive business strategies amid a rapidly evolving retail landscape, ensuring sustained growth and brand alignment.
The sale, which is expected to be finalised by the end of 2024, is contingent upon standard regulatory approvals and other customary closing conditions. This timeline suggests a smooth transition as both entities work towards fulfilling all necessary obligations to meet the stipulated agreement terms.
Supreme commands a formidable presence in the global streetwear market, boasting 17 strategically located stores across major fashion hubs in the United States, Asia, and Europe. Notably, its flagship store in London’s Soho underscores its pivotal role in shaping contemporary fashion trends and appealing to a discerning consumer base.
EssilorLuxottica, a leader in the eyewear industry, stands to gain substantial benefits from integrating Supreme into its diverse brand lineup. This acquisition could potentially enhance EssilorLuxottica’s market reach, leveraging Supreme’s unique brand identity and cultural resonance within the fashion domain.
In summary, this acquisition marks a significant shift in Supreme’s corporate trajectory, aligning it with a leading global eyewear brand.
