VF Corp The company that owns the Vans shoe brand will acquire Supreme clothing for $2.1 billion. VF Corp says it is ready to pay additional funds of up to US $ 300 million, depending on the closure achievement.
The shares of the company which also oversees brands such as The North Face and Timberland jumped about 13%. For about $78.94 is in trading Tuesday (10/11) afternoon.
As reported by CNN, Wednesday (11/11/2020) ), Supreme was found in a New York skateboard shop in 1994, and is becoming popular with skateboarders, hip-hop fans, and Millennials to Gen Z and the hypebeast community. a in 2007, the Carlyle Group acquired half the company for $500 million.
VF says Supreme gives him deeper access to an attractive consumer segment that applies to many existing VF brands.
“We are very happy to welcome Supreme to the VF family. And build on our relationships over the decades as we create value for all of our stakeholders. ” said VF CEO Steve Rendle in a written statement.
Young people quite recognize the uniqueness of the Supreme brand. So that the selling price is much higher than other streetwear such as VF’s Vans or Nike.
This brand is famous to be close to the typical style of American urban youth clothing that is synonymous with skateboarding or hip-hop.
“This rare, contemporary, and strong social influence model supports the power of product prices and generates best-in-class profits,” he concluded.