VF Corp, the parent of Vans, Wrangler, and Timberland, has made a big market splash this week by purchasing Williamson-Dickie Manufacturing Company. It’s a deal that will take into effect sometime at the beginning of the fourth quarter and will reportedly cost the corporation more than $820 million dollars. It’s certainly a hefty price tag, but the move will pay substantial dividends in just a few years. In fact, by 2021, the purchase of Williamson-Dickie will inject more than a billion dollars back into VF. Because of this, VF’s expected 2017 revenue will be boosted by 3.5%, which will equal roughly $11.85 billion in total annual earnings.
More commonly known as Dickies, the iconic American brand has been a Texas-based operation since its foundation back in 1918. The clothing manufacturer has spent the last century making a name for itself by crafting durable and affordable workwear, with an occasional moment in the fashion spotlight thanks to cultural movers and shakers. In the 1990s and early 2000s, Dickies gear was championed by big names in the hip-hop community, which helped to usher in a work-related clothing trend in mainstream streetwear.
In a statement released earlier today, VF CEO, Steve Rendle, called the purchase a merger of two powerful names in apparel. “This acquisition combines two great companies and a group of iconic brands to create a global leader in workwear,” Rendle said. “Today’s announcement is an authentic and natural next step as we look to combine the strengths of our two companies to create significant opportunities for our employees, vendors, retail partners and ultimately our customers.”
For more on the big business move, and to find out what it means for the future of VF and Williamson-Dickie, check out the official company statement here.
