NEW YORK—VF Corporation announced this morning that they have signed a merger agreement with The Timberland Company. VF will pay Timberland shareholders $43 per share, a deal worth about $2 billion. The two companies expect the deal, which could add $700 million to VF’s 2011 revenue, to close in the third quarter.
Timberland, a New Hampshire-based global footwear and apparel company, expects 2011 revenue of $1.6 billion, over half of which is generated internationally. The company reported a troubling 30.2 percent drop in first quarter profit in May, despite 10.1 percent revenue growth. The profit dive was blamed on rising costs.
Commenting on the acquisition, VF Corp. CEO Eric Wiseman said in a statement, “The Timberland brand is synonymous with high quality outdoor footwear and apparel. We believe the unique rugged outdoor positioning of the Timberland brand will perfectly complement the premium, technical positioning of The North Face brand, while the Smartwool brand will provide us with a leadership position in a new category.”
Wiseman went on to say that the acquisition will bring VF’s total outdoor business to over 50 percent of their total revenue.
“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,” said Timberland president and CEO Jeffrey Swartz. “VF is known for its ability to acquire and grow authentic outdoor brands, while protecting a brand’s unique culture and DNA.”
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