The French-Italian eyeglasses manufacturer Essilor Luxottica will purchase the American worldwide clothing and footwear brand — which presently owns 13 prominent brands, including Vans, Timberland, and the North Face — for $1.5 billion in cash, as per a statement released by VF Corporation on Wednesday.
According to VF CEO Bracken Darrell, the company’s strategic portfolio evaluation determined that there are little synergies between Supreme’s “distinct business model and VF’s integrated model.” Selling the unit was a “logical” option, in his words.
Although the sale of Supreme may have been somewhat anticipated, the buyer is quite surprising. With a vast portfolio of 150 brands, including Ray-Ban, Oakley, Barberini, and others, EssilorLuxottica has historically concentrated on eyeglasses. Although this is the company’s first investment in a clothing brand, it is certain that Supreme will be a fantastic match.
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“Supreme provides the company with a direct channel to a new market,” according to EssilorLuxottica, which collaborated exclusively with JP Morgan and Latham & Watkins as financial and legal consultants.
According to a statement from EssilorLuxottica executives Francesco Milleri and Paul du Saillant, “We see an incredible opportunity in bringing an iconic brand like Supreme into our company. It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity.”
Supreme also shares EssilorLuxottica’s sentiment and sees the deal as a wise decison. “In EssilorLuxottica, we have a unique partner that understands that we are at our best when we stay true to the brand and continue to operate and grow as we have for the past 30 years,” added Supreme founder James Jebbia. “This change positions us for long-term success while allowing us to concentrate on the brand, our goods, and our customers.”
“With its unique brand identity, fully-direct commercial approach and customer experience…Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well,” EssilorLuxottica’s CEO Francesco Milleri assured Supreme.
It’s anticipated that the deal would conclude by the end of 2024.
Strengthening its drive into medical technology, Essilor Luxottica said in a separate announcement that it has agreed to purchase an 80% share in family-owned Heidelberg Engineering, a German business that specializes in ocular diagnostic solutions. No further financial information has been released by the companies.