$2bn Timberland Takeover
14 Jun, 2011
Timberland, the long-established outdoor clothing producer, is being taken over by the world’s largest clothing company, VF Corporation in a deal worth $2bn(£1.2bn).
VF Corporation can already boast Lee and Wrangler jeans, Vans shoes and The North Face brands as part of its portfolio.
“The Timberland brand is synonymous with high quality outdoor footwear and apparel,” said Eric Wiseman, VF Corporation’s chief executive, who added that the company had been number one on its acquisition hit list for years. “The unique rugged outdoor positioning of Timberland will perfectly complement the premium, technical positioning of The North Face brand.”
VF Group said the deal had the backing of Timberland’s founding Swartz family.
“Timberland is proud of its rich heritage, its track record of success and its reputation as a responsible and environmentally conscious global citizen, all of which will be preserved and enhanced by becoming part of the VF family of brands,” Jeffrey Swartz said, according to The Independent.
The takeover is pitched at $43 per Timberland share, and VF Corporation said the acquisition would add to its earnings per share immediately, but said it would take five years to significantly raise Timberland’s margins.