Essilor Luxottica has signed a definitive agreement to acquire streetwear brand Supreme from VF Corp. for $1.5 billion in cash. Supreme is one of a number of acquisitions by the French-Italian eyewear maker that reportedly also include Ray-Ban, Oakley, Oliver Peoples and Xiamen Yarui Optical.
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“An iconic brand like Supreme “This acquisition is a milestone for our company. It is perfectly aligned with our innovation and development path, giving us the opportunity to connect directly with new customers, languages and creativity,” said Francesco Mirelli, Chairman and CEO of EssilorLuxottica, and Paul du Saillant, Deputy CEO.
“With its unique brand identity and fully direct commercial approach and customer experience – a model we strive to maintain – Supreme will have a unique position within our house brand portfolio and will also complement our licensing portfolio. Supreme is well positioned to leverage the Group’s expertise, capabilities and operating platform,” they explained.
“Under VF, Supreme is again experiencing strong growth with an expanded presence in the key markets of China and Korea. However, given the brand’s unique business model and VF’s integration model, our strategic portfolio review concluded that there are limited synergies between Supreme and VF, making a sale a natural fit,” VF president and CEO Bracken Darrell added in a statement.
“While we will continue to evaluate adjustments to our VF portfolio from time to time, this transaction provides us with increased balance sheet flexibility and supports our program to strengthen our overall positioning for long-term growth and normalize our debt levels,” Darrell said.
The transaction is expected to close by the end of 2024, subject to customary closing conditions and regulatory approvals.
Founded in New York in 1994 by James Jebbia, Supreme sells clothing and shoes targeting skateboarding and urban trends and has been notable for its partnerships with big brands such as Nike, Louis Vuitton and The North Face.
In a statement, Jebbia expressed his support for the acquisition, saying it would “allow us to focus on our brands, products and customers while positioning ourselves for long-term success.”
Separately, Essilor Luxottica also signed an agreement to acquire an 80 percent stake in Germany-based Heidelberg Engineering, which specializes in diagnostic solutions for clinical ophthalmology, digital surgery technologies and medical IT, it said in a statement.
The agreement will expand EssilorLuxottica’s presence in the medical technology sector and advance the company’s vision of creating a shared care system for eye care.
Founded in 2018 through the merger of Italian eyewear company Luxottica and France’s Essilor, the eyewear company is a leading designer, manufacturer and distributor of eyeglass lenses, frames and sunglasses.
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