![](https://www.cmgassets.com/s3fs-public/styles/article_node_main_image/public/2024-07/charlesdeluvio-9z2oiccdssc-unsplash.jpg?h=c464323c&itok=q6WBgkOT)
EssilorLuxottica acquires Supreme from VF Corporation for $1.5b
The transaction is expected to close by the end of 2024.
EssilorLuxottica has announced a definitive agreement to acquire the Supreme® brand from VF Corporation for $1.5b in cash.
The transaction is expected to close by the end of the calendar year, pending customary closing conditions and regulatory approvals.
“It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity,” Francesco Milleri, chairman and chief executive officer, and Paul du Saillant, deputy chief executive officer of EssilorLuxottica said in a joint statement.
“With its unique brand identity, fully-direct commercial approach and customer experience – a model we will work to preserve – Supreme® will have its own space within our house brand portfolio and complement our licensed portfolio as well,” they added.
Bracken Darrell, president and CEO at VF Corporation, also highlighted the strategic reasoning behind the sale.
“Under VF, Supreme® expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth,” he said.
“However, given the brand’s distinct business model and VF’s integrated model, our strategic portfolio review concluded there are limited synergies between Supreme® and VF, making a sale a natural next step,” Darrell said.
The Supreme brand operates a digital-first business model and 17 stores across the U.S., Asia, and Europe. The sale of Supreme is expected to be dilutive to VF’s earnings per share in fiscal 2025.
Advisors for the transaction include J.P. Morgan and Latham & Watkins for EssilorLuxottica, and Goldman Sachs, UBS, and Davis Polk & Wardwell for VF.