VF Corp. finally pulled the trigger on an acquisition and it’s a big one.
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The parent company of The North Face, Vans and Reef announced this morning it is buying outdoor company Timberland for $2 billion, or $43 per share.
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Timberland is expected to generate $1.6 billion in revenue in 2011.
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VF said Timberland’s rugged outdoor DNA compliments The North Face’s more technical outdoor business.
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The move will propel VF’s Outdoor & Action Sports Coalition to more than 50% of total VF revenues.
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VF said it will help Timberland grow 10% annually by leveraging VF’s international platforms in Europe, Asia, and Latin America and by leveraging VF’s direct to consumer platforms.
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VF also plans to expand Timberland’s Smartwool apparel brand, and grow the company’s footwear and apparel offering for women.
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In addition, VF believes its back end operating systems, especially with sourcing, can improve Timberland’s profitability.
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Timberland can help VF with its footwear expertise, it’s experience and high penetration in Japan and by sharing its best practices in sustainability.
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The deal is expected to close in the third quarter.
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