mvncnt/blog

Timberland, the maker of the classic 6 inch boot and Beef and Broccoli hikers and other outdoorsy type goods has just been purchased by worlds largest apparel company VF Corporation for $2 billion or roughly $43 per share.  Everything should be finalized by the 3rd quarter. VF Corporation already has a large portfolio of brands, many of which you know, including: VANS, The North Face, John Varvatos, 7 For All Mankind, Lee, Wrangler, Eastpak, Majestic and Jansport just to name a few. Overall this will help VF Corporation as it compliments brands such The North Face and Timberland brings its deep-green and rugged outdoor expertise. Furthermore the Timberland brand will help VF Corporations global reach. There will definitely be structural changes and unfortunately some layoffs within Timberland and only time will tell if the consumer benefits with this deal. Timberland has been offering up really nice products lately and I’m sure that will continue.

PRESS RELEASE from VFC

• Transformative Acquisition Will Create $10B Global Apparel & Footwear Powerhouse
• Addition of Timberland(R) and Smartwool(R) Brands Will Boost VF’s Outdoor & Action Sports Business to 50% of Total Revenues
• Will Provide Significant EPS Accretion in 2011 and 2012

Links to story:

CNN

BUSINESS WEEK