VF Corporation, the parent company of Smartwool, Timberland, and The North Face, announced today that it has signed a definitive merger agreement to acquire the direct-to-consumer streetwear company Supreme. The deal is set to be completed before the end of the year.
Supreme, which sells apparel, accessories, and footwear, is no stranger to the outdoor industry. The brand has collaborated for years with Timberland and The North Face; its latest crossover project is a new TNF jacket collection for fall 2020. Well known for its direct-to-consumer digital presence, the company will bolster VF's efforts to transition to a more digital-first business model, according to a statement released today.
"The Supreme brand will further accelerate VF’s hyper-digital business model transformation," said VF CEO Steve Rendle. "VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth."
James Jebbia, Supreme's founder, said of the merger, "We are proud to join VF, a world-class company that is home to great brands we’ve worked with for years. This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”
In its announcement, VF said that Supreme "offers a $1 billion global opportunity over time through international and direct-to-consumer expansion, core pillars of VF’s 2024 strategy." The new brand is expected to contribute at least $500 million in revenue to VF by 2022.