VF Corp (VFC) Buys Maker of Dickies for $820 Million

VF Corp (NYSE:VFC) has reportedly agreed to acquire the maker of Dickies for $820 million.

VF Corp (VFC)The parent company of the workwear brand is Williamson-Dickie Mfg. Co, which is privately owned. The Fort Worth, Texas-based manufacturer also produces Workrite outfits.

The deal is an all-cash transaction that will immediately boost VF Corp’s revenue, raising it by 3.5% to $11.85 billion in fiscal 2017. This figure includes about $200 million from Williamson-Dickie.

The deal is slated to add more than $1 billion in revenue to VF Corp by 2021. It will also help the company add two cents to its earnings forecast for the current year, hiking it up to $2.96 per share, which would mark a 1% decline compared to fiscal 2016 earnings of $2.98 per share.

The deal is slated to close early in the fourth quarter. Williamson-Dickie brought in about $875 million in revenue over the last 12 months, while the new combined company will rake in about $1.7 billion in annual revenue.

VF Corp is the maker of popular apparel brands such as Timberland, Wrangler. It also controls more than half of the backpack market, manufacturing brands such as Jansport, Eastpak and North Face.

Its headquarters are located in Greensboro, North Carolina.

VFC stock surged 2.2% Monday. Company shares experienced a stumble early in the year as they dipped down to $48.32 per share late in January, but the stock recovered and grew steadily, increasing over 18% year-to-date.

Article printed from InvestorPlace Media, https://investorplace.com/2017/08/vf-corp-vfc-dickies/.

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