VF Corporation announced on Monday that it will acquire streetwear brand Supreme for $2.1 billion. Vans’ parent company will pay an additional $300 million “subject to satisfaction of certain post-deal closing milestones.” In addition to Vans, Supreme will join The North Face and Timberland on VF’s roster.
Investors the Carlyle Group and Goode Partners are selling their stakes in Supreme as part of the agreement and founder James Jebbia will remain with the company, along with the brand’s senior leadership team.
“We are proud to join VF, a world-class company that is home to great brands we’ve worked with for years, including The North Face, Vans, and Timberland,” Jebbia said. “This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”
Adding Supreme to VF Corporation’s roster will strengthen its e-commerce business. The streetwear brand gets over 60% of its revenue from the online business. After announcing its acquisition, shares of VF Corporation rose 10% to $77.24 in premarket trading.
The deal is expected to be completed by the end of 2020.