VF Corporation adds another brand acquisition, this time by signing a definitive agreement to purchase zero-drop footwear pioneers Altra from current owners ICON Health & Fitness. Terms of the agreement were not disclosed, but Altra’s annual revenue is estimated at about $50 million, which would represent less than 1% of VF’s revenue.
ICON Health & Fitness purchased Altra is 2011, shortly after is creation by cousin co-founders Golden Harper and Jeremy Howlett. Harper was working at Runner’s Corners, his parents run specialty shop in Orem, Utah, at the time of the launch, where he was modifying shoe for customers in ways that led to the genesis of the company. Currently, Altra’s are sold in 55 countries through more than 1,600 specialty retail locations and a branded e-commerce platform.
“The acquisition of the Altra brand is another example of our efforts to reshape and evolve our portfolio of powerful brands to align with our enterprise value creation model,” said Steve Rendle, Chairman, President and Chief Executive Officer of VF Corporation. “The active outdoor and performance sector is a large and attractive growth space. The addition of the Altra brand brings to VF a unique and differentiated technical footwear brand and a capability that when applied across VF’s outdoor footwear, direct-to-consumer and international platforms will serve as a catalyst for growth.”
The transaction is expected to be completed in April 2018. The news follows two recent acquisitions by the Greensboro, N.C.-based owner of Timberland, Vans and The North Face, which announced plans to acquire Icebreaker and Williamson-Dickie Mfg. Co. in November and August 2017 respectively.
“The Altra acquisition appears to be a sound fit for VFC, with extensions into a new consumer segment in the performance running area,” said Jim Duffy, an analyst at Stifel, in a note.
“The acquisition fulfills VFC’s strategic criteria to reach productive consumer segments, and potentially create synergies with other portfolio brands while being immediately accretive and likely additive to the growth and margin profile. While the Altra deal represents less than 1 percent of sales, the deal thematically fits VFC’s strategy to reshape the portfolio and drive shareholder returns.”
