VF, home to Wrangler, Lee, Riders, North Face, etc. just inked a deal to bring Seven for All Mankind into the fold. The deal for 7FAM is $775 million financed through a mix of existing cash, VF credit lines, and long-term debt. Along with this VF is also picking up lucy, a rapidly growing women's activewear brnd with approx. $57 million in annual sales, for $110 million
It is important to note that Mike Egeck, 7FAM's CEO, used to work for VF. He is now expected to be President of VF Contemporary Brands (to be made up of 7FAM, lucy, and future additions) and report to VF President and CEO Eric Wiseman.
Here's the PR:
VF Corporation (NYSE: VFC), a global leader in lifestyle branded apparel, announced today that it has signed definitive agreements to acquire two dynamic and growing companies, Seven For All Mankind, LLC and lucy activewear, inc. The two companies will form the foundation of a new lifestyle brand-based coalition, VF Contemporary Brands, which VF intends to build with additional contemporary brands over time. VF's other coalitions are Outdoor, Jeanswear, Sportswear and Imagewear. Upon closing these transactions, VF will name Mike Egeck as President of VF Contemporary Brands, in addition to his current role as Chief Executive Officer of Seven For All Mankind, reporting to Eric Wiseman, President and Chief Operating Officer of VF Corporation.
"Our ability to identify, acquire and grow brands has been a key driver of shareholder value over the past several years, and we're clearly maintaining this momentum," said Mackey J. McDonald, Chairman and Chief Executive Officer. "The acquisition of these high growth, high potential brands marks another milestone in the continuing success of our Growth Plan. These brands extend our reach to important and growing consumer segments, broaden our presence in healthy and growing channels of distribution, provide us with additional vehicles to expand our direct-to-consumer business through owned retail stores and online sales and offer the potential for continued growth internationally."
Added Wiseman, "The formation of the VF Contemporary Brands coalition, with over $350 million in annual revenues, marks our commitment to building new platforms for sustainable growth. We will invest in the potential of both the 7 For All Mankind(R) and lucy(R) brands, and also plan to acquire other brands that will enhance the portfolio of this new coalition."