VF Corp. shareholders are seeing double.
The company said early Monday it would split itself into two, spinning off its jeans and outlet businesses in a tax-free transaction during the first half of next year.
After the deal, VF investors would hold shares of two companies, the new company featuring Lee and Wrangler and based in Greensboro, N.C., and VF, which will have $11 billion in revenues and include The North Face, JanSport, Smartwool, Altra and Eagle Creek brands and will be based in Denver.
“As shown by our recent quarterly results, VF continues to gain momentum on our transformation journey, marked by strong progress on our strategic initiatives and portfolio management,” said Steve Rendle, chairman, president and chief executive officer. “With these strong foundations in place, we are now ideally positioned to create two independent, leading, global companies. In alignment with our strategic plan, the decision to separate these businesses will allow VF to sharpen its focus as a consumer-centric and retail-minded organization anchored in activity-based lifestyle brands. Our jeans platform is a successful, sustainable business with iconic global brands and a clear path to value creation as a stand-alone entity.”
Rendle will continue to lead VF Corp. The company also announced the anticipated designation of Scott Baxter as ceo of NewCo, the jeans company spinoff, and Rustin Welton as its chief financial officer.
“Scott is an extremely talented leader who has a long track record of success, which includes leading the jeans business from 2011 through 2015, a period during which the business grew at a midsingle-digit rate,” Rendle said.
The planned spinoff still required final approval by the company’s board of directors, and customary regulatory approvals and tax and legal considerations. VF also said investor days will be held for both VF and NewCo during the first half of calendar 2019.