VF Corp. to buy Williamson-Dickie for $820M


It now projects exceeding $15 billion in revenue and $5 per share. This figure includes about $200 million from Williamson-Dickie.

Philip Williamson, Williamson-Dickie's chief executive officer, will remain with the Fort Worth, Texas-based company.

The deal is slated to close early in the fourth quarter.

During the recent 12 months, Williamson-Dickie's revenue was about $875 million, the news release stated. "For the company to hit that mark, the top line needs the kind of big boost that a new, growing brand could bring", Fortune said. Its brands are sold through a network of owned retail stores, franchisees, volume retailers, department stores, independent stores and online.

VF already sells the workwear brands Wrangler RIGGS Workwear, Timberland PRO, Red Kap, Bulwark, and Horace Small. VF expects the brands will add more than $1 billion in revenue to its balance sheet by 2021.

The Dickies brand gives VF a new revenue source after two years of sputtering sales growth.

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VF said the plan has six key initiatives: design and innovation; demand creation and brand experience; insights and analytics; retail excellence; demand and supply chain agility; and talent. The companies announced August 14 they have signed a definitive merger agreement.

"As we ... look for ways to accelerate growth in our workwear platform, the highly fragmented nature of the $30 billion global workwear market offers several unique acquisition opportunities", VF Chief Executive Steve Rendle said during a call with investors.

Together, the companies would have $1.7 billion in annual revenue. Williamson-Dickie is expected to contribute more than 25 cents in EPS by 2021.

"We remain committed to ongoing and active portfolio management, and we will continue to make transformational moves and evolve VF as we have done many times throughout our history", he said.

VF Corporation, whose brands include Timberland, Wrangler and The North Face, last month said revenues in its Imagewear business rose 12% to $150m. Company shares experienced a stumble early in the year as they dipped down to $48.32 per share late in January, but the stock recovered and grew steadily, increasing over 18% year-to-date.

The Greensboro-based VF stated that Williamson-Dickie brands include Dickies, Workrite, Kodiak, Terra, and Walls.