Google News
spot_img

VF to buy two fashion companies for $885 million

Must Read

Giant apparel maker VF Corp. is buying two fashion companies – Seven for All Mankind LLC and Lucy Activewear Inc. – for a combined $885 million, in a move to help fuel growth in a stagnant retailing environment.

In a news release, the company said that the acquisitions will be financed through existing cash, borrowings under its existing credit facility, and placement of long-term debt. Both acquisitions are expected to be completed by the end of August.

“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, VF chairman and CEO, in a statement. “The acquisition of these high-growth, high-potential brands marks another milestone in the continuing success of our growth plan,” he added

VF is acquiring Seven For All Mankind, a denim label with an estimated $300 million in annual revenues, for $775 million. It is purchasing Lucy, a rapidly growing women’s activewear brand with about $57 million in estimated annual sales, for $110 million.

Latest News

D2C brand Beyoung to go international with the first store in Dubai

The brand is focusing on increasing its presence in the Middle East and achieving a GMV of Rs 650...