VF Corp will buy the Supreme brand from founder James Jebbia and private equity firms Goode Partners and The Carlyle Group. The latter acquired 50% of Supreme for $ 500 million, valued at $ 1 billion in 2017, The Wall Street Journal writes.
The deal for more than $ 2 billion will be closed by 2020, subject to all conditions and regulatory approvals.
VF Corp, the owner of Vans, will leave James Jebbia the opportunity to lead the brand after purchase.
VF President and Chief Executive Officer Steve Randle noted that the corporation respects Supreme's achievements and heritage and is leveraging its full scale to ensure the company's sustainable, long-term growth. Jebbia assured: "The partnership will preserve our unique culture and independence, allowing us to grow on the path we started in 1994."
60% of Supreme's revenue, more than $ 500 million, comes from online orders. VF believes the company has the ability to open more brick-and-mortar stores. Now there are only 12 of them open - in New York, San Francisco, Los Angeles, London and Japan.
American streetwear brand Supreme, founded in New York in 1994, manufactures and markets apparel, accessories, and skateboards. The brand is focused on the culture of skateboarding, hip-hop and rock music, as well as the entire youth culture in general.
With the acquisition, VF hopes to advance its business expansion strategy. According to the corporation's forecast, in fiscal 2022, the Supreme brand could bring at least $ 500 million in revenue.