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B2B Журнал
14.08.2018 | Наталья Кулагина

VF Corporation restructures business

American company VF Corporation The world leader in the production and sale of clothing, footwear and accessories has announced a restructuring of the business. The Board of Directors intends to split it into two independent public companies. The assets for the production of clothing and footwear will be concentrated in VF Corporation, and an as yet unnamed company (so farNewCo) with a separate management team will be engaged in the business of VF Jeans and VF Outlet and will become the world leader in the jeans category, according to a press release from VF Corporation.The new company will include brands such as Wrangler, Lee, Rustlers, Rock and Republic. The separation will give the company more flexibility to implement its M&A strategy, explore new growth vectors and attract even more investment in its brand portfolio.

 

 

The creation of a new company will take place with the help of a tax-free distribution of its shares among shareholders VF. The separation of the business is planned to be completed in the first half of 2019.

It is expected that the total annual revenue of the new company will exceed 2.5 billion mdollars, VF Corporation – more than 11 billion dollars. The corporation believes that the division of business will be beneficial from the point of view of asset management, while simplifying the process of managing structures. NewCo will have an attractive financial profile, including a stable high dividend yield.It will have best-in-class supply chains reinforced by deep and long-standing relationships with the world's leading retailers.In addition, NewCo will have a diversified geographical coverage and plans to further expand it, focusing on Asia, building on its presence in China. 

 

 

The company also announced the proposed appointment of Scott Baxter as the Chief Executive Officer of NewCo. The headquarters of NewCo will be located in Greensboro, North Carolina.The Lee brand will move its headquarters to Greensboro from Kansas City, joining the Wrangler brand.

 

 

VF Corporation was founded in 1899. In 1969, the company acquired the first denim brand Lee. In 1986, she bought Blue Bell Holding Co, which owned the brands Wrangler, Rustler and JanSport.

 

Photo: shutterstock

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