VF Corp to Buy Dickies Workwear Maker for $820M
VF Corp, whose brands include Vans, The North Face and Timberland, announced yesterday that it is buying privately held Williamson-Dickie Mfg. Co, the owner of Dickies and Workrite workwear, for $820 million. The deal is expected to close early in the fourth quarter. This represents VF Corp's first major acquisition since its deal for Timberland six years ago. Williamson-Dickie is expected to add more than $1 billion of revenue to VF by 2021.
Total Retail's Take: VF Corp has been in the acquisition market as it looks to grow the business, with the company's CEO telling Fortune that its deal sweet spot were companies with the potential to achieve $1 billion in annual revenue. VF has leveraged acquisitions in the past — including Timberland, Vans, The North Face — as a means to increase its market share in the apparel industry, and has been recognized for its ability to take popular but underperforming brands and make them profitable through disciplined management, technology enhancements and bulk manufacturing cost benefits. With Dickies, VF Corp is gaining a new type of apparel brand for its portfolio — one that focuses on workwear.