VF Corporation Announces Definitive Agreement to Acquire Altra®, an Athletic and Performance-Based Lifestyle Footwear Brand, From ICON Health & Fitness
MARCH 14, 2018
GREENSBORO, N.C.–(BUSINESS WIRE)– VF Corporation, a global leader in branded lifestyle apparel, footwear and accessories, and ICON Health & Fitness, Inc., a world leader in home, commercial and connected fitness, today announced that they have signed a definitive purchase agreement for the Altra® footwear brand. Terms of the agreement were not disclosed.
ICON Health & Fitness launched the Altra® brand in 2011. It is sold in 55 countries through more than 1,600 specialty retail locations and a branded e-commerce platform (www.altrarunning.com). Its specialized, innovative design technology for road, trail, and lifestyle footwear has created a high-growth, award-winning brand with a strong and dedicated enthusiast following.
“The acquisition of the Altra® brand is another example of our efforts to reshape and evolve our portfolio of powerful brands to align with our enterprise value creation model,” said Steve Rendle, Chairman, President and Chief Executive Officer of VF Corporation. “The active outdoor and performance sector is a large and attractive growth space. The addition of the Altra® brand brings to VF a unique and differentiated technical footwear brand and a capability that when applied across VF’s outdoor footwear, direct-to-consumer and international platforms will serve as a catalyst for growth.”
On a trailing 12-month basis, the Altra® brand generated approximately $50 million of revenue. The transaction is expected to be completed in April 2018 and the addition of the Altra® brand to VF’s portfolio is expected to be immediately accretive to earnings per share.
“The Altra® brand’s truly innovative product and devoted brand loyalists will serve it well in its new home at VF,” said Scott Watterson, ICON’s Chairman and CEO. “The sale of Altra® will accelerate the continuing growth of our NordicTrack and ProForm core brands, our Freemotion commercial business, and iFit, our connected fitness subscription. The global health and wellness industry is exploding, and we’re doubling down on that growth.”
Wells Fargo Securities, LLC served as exclusive financial advisor to VF on the transaction. Davis Polk & Wardwell LLP is acting as legal advisor.
About VF
VF Corporation (NYSE: VFC) outfits consumers around the world with its diverse portfolio of iconic lifestyle brands, including Vans®, The North Face®, Timberland®, Wrangler® and Lee®. Founded in 1899, VF is one of the world’s largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels. VF is committed to delivering innovative products to consumers and creating long-term value for its customers and shareholders. For more information, visit www.vfc.com.
About ICON
ICON Health & Fitness is a world leader in the home, commercial and connected fitness with such leading brands as NordicTrack, ProForm, iFit, Freemotion and Weider. The privately held company holds more patents than any other in its category, and is known for its aggressive research, development and innovation. Founded in 1977 by Scott Watterson and Gary Stevenson, ICON is based in Logan, Utah.
