VF Corp., whose brands include Timberland, Vans, Supreme and The North Face, has entered into a definitive agreement to sell the occupational portion of its Work segment to a subsidiary of Red Capital Investments LLC, a diversified holding company.
The occupational workwear portion of VF’s Work segment includes Red Cap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small. The sale does not include the Dickies and Timberland Pro brands.
Steve Rendle, chairman, president and chief executive officer of VF, said, “The sale of our occupational work brands reflects our continued focus on transforming VF into a more consumer-minded and retail-centric enterprise while further simplifying our portfolio and operating model. We are pleased to have reached this agreement with Redwood Capital Investments. They are an ideal owner to guide these brand and businesses into their next phase of growth.”
For fiscal year 2020, VF reported $10.5 billion in overall revenues.
The transaction is expected to close in the first quarter of fiscal 2022. Terms of the agreement were not disclosed.
Barclays served as exclusive financial adviser to VF, while Davis Polk & Wardwell LLP acted as legal adviser. JPMorgan was the exclusive financial adviser to Redwood Capital Investments and Kirkland & Ellis LLP acted as legal adviser.
In January 2020, VF said it was exploring strategic alternatives for a portion of its workwear business, although it planned to continue to hold on to and develop the Dickies and Timberland Pro brands. At the time, VF said the “strategic review” was driven by its push to become a “more consumer-minded and retail-centric enterprise, with a portfolio of growth-oriented active, outdoor and work brands.” It was reported at the time that the brands accounted for roughly $865 million in revenues in the previous year, roughly half the company’s work sales.
Based in Baltimore, Redwood Capital Investments is a holding company for businesses across a range of industries, including those in distribution, equipment leasing and real estate.
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