Supreme has been acquired in $2.1bn deal by VF Corporation

The American apparel and footwear company VF Corporation is set to acquire the street wear giant Supreme. VF Corporation currently owns brands such as The North Face, Vans, Dickies and Timberland.

The deal was first announced by WWD and is expected to close before the end of VF Corp’s 2020 year. The founder of Supreme (James Jebbia) noted that Supreme would still maintain its independence, whilst saying “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. This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”

Supreme’s current investors, Goode Partners and The Carlyle Group will now have to sell their stakes in the brand. Carlyle Group were known to have a stake in Supreme in 2017, Jebbia announced that their investment would provide “operational expertise needed to keep us on the steady path we’ve been on since 1994.”

It was also noted by business analysts that Carlyle Group were unlikely to hold the business indefinitely, as its model has typically been to gow and sell brands after three to five years.