Mergers & Acquisitions Investors Would Love to See VF Corp (VF) and Columbia Sportswear (COLM)
Buyer: VF Corp (NYSE:VFC)
Seller: Columbia Sportswear Company (NASDAQ:COLM)
Both of these companies’ stocks are trading near 52-week lows: Columbia a little over a dollar from its 52-week low of $51.56 and VF Corp less than $5 from its 52-week low of $48.05.
Needless to say, long-time shareholders probably aren’t very happy at the moment. However, both stocks have had bouts of good performance over the years due to a stable of strong brands.
VF’s CEO says his company wants to make a big acquisition, but the valuations are simply too high.
“We’ve looked at a lot of brands on a monthly basis in the last 2-3 years,” said VF CEO Steve Rendle in April in a Fortune Q&A. What’s prevented us from acting is the valuation of those companies at those times. … It remains our #1 strategic choice around reshaping our portfolio to be able to compete.”
COLM stock seems pretty cheap at the moment. Combine Columbia’s strong outdoor brand with Timberland and North Face, get rid of Lee jeans and presto, you’ve got a very competitive lifestyle apparel company.