VFC Stock News: 8 Things to Know About the $2.1 Billion Supreme Deal

VF Corp (NYSE:VFC) stock is soaring higher on Monday following news of a deal to acquire Supreme.

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Here’s what to know about the deal between VF Corp and Supreme.

  • VFC is going to spend $2.1 billion to bring Supreme into the fold by the end of this year.
  • This has it buying shares of the private company from investors The Carlyle Group and Goode Partners.
  • Based on the offer price from VF Corp, these investors are making a pretty penny off of Supreme by selling their stakes in it.
  • The news is also good for investors in VFC stock as the company expects the acquisition to be accretive to its earnings.
  • VF Corp says it expects Supreme to contribute a minimum of $500 million in revenue and 20 cents to its adjusted earnings per share in fiscal 2022.
  • The company notes that Morgan Stanley provided it with a fairness opinion and Davis Polk & Wardwell LLP was its legal advisor for the deal.
  • Supreme is a seller of accessories, apparel, and footwear mostly through direct online sales.
  • VFC says it expects this to complement its own offerings, such as the Vans and Timberland brands.

Simeon Siegel, a BMO Capital Markets retail analyst, said the following to Bloomberg about the news moving VFC stock today.

“What this shows us is companies are looking for needle-moving acquisitions rather than tuck-ins, and they’re looking for needle-moving acquisitions of exciting companies.”

VFC stock was up 13.5% as of Monday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/11/vfc-stock-news-supreme-deal-details/.

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