VF Corporation, which presides over familair brands Wrangler, The North Face, Vans, Timberland, Jansport, and Williamson-Dickie Mfg. Co., parent company to the Dickies, Walls, Terra and Kodiak brands, have signed a definitive merger agreement. VF will pay Williamson-Dickie shareholders approximately $820 million in cash. On a trailing 12-month basis, Williamson-Dickie generated approximately $875 million of revenue.
The transaction is expected to be completed early in the fourth quarter of this year. Philip Williamson, CEO of Williamson-Dickie, reportedly will remain with the company, headquartered in Fort Worth, Texas.
“When we introduced our 2021 global business strategy earlier this year, reshaping our portfolio to accelerate growth was our highest priority,” said Steve Rendle, president and CEO of VF. “The acquisition of Williamson-Dickie is another meaningful step that delivers on that commitment and further demonstrates our focus on being an active portfolio manager to drive transformative growth for VF and value creation for our shareholders.”
After the deal was announced, VF revised its outlook with revenue now expected to reach $11.85 billion, up 3.5 percent on a reported basis (up 4.5 percent currency neutral), and includes about a $200 million contribution from Williamson-Dickie. This compares to the previous expectation of $11.65 billion, a 2 percent increase on a reported basis (up 3 percent currency neutral).
