The New York-based skateboard and streetwear brand Supreme has just been sold for US$2.1 billion.
The company was snapped up by VF Corp., which also owns The North Face, Timberland and Vans. VF Corp said that it has reached a ‘definitive agreement’ to purchase Supreme, and there might be an additional US$300 million if certain expectations were met.
As part of the deal, Supreme’s current investors the Carlyle Group and Goode Partners will be selling their stakes in the brand.
Supreme was started back in 1994, by American/British businessman James Jebbia. It was a small skateboarding shop on Lafayette Street in lower Manhattan, but it has since grown into a global fashion phenomenon due in part to its high-end and sometimes wacky collaborations.
Supreme products are known to sell-out almost immediately, with many diehard fans queuing up for hours outside the brand’s flagship store for a chance to buy an item each new collection. The current resale value of Supreme products remains high.
The relationship between VF Corp. and Supreme is well-established at the minute. Not only has Supreme collaborated with The North Face and Timberland over the years, but just announced a collab with Vans.
VF Corps., believes that Supreme will be a shot in the arm of its e-commerce business.
“The acquisition of the Supreme brand is further validation of our vision and strategy to further evolve our portfolio of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector,” VF Corp’s founder, president and CEO Steve Rendle said in a statement.
“The Supreme brand will further accelerate VF’s hyper-digital business model transformation and will be a meaningful driver of VF’s commitment to top quartile total shareholder return and long-term value creation.”
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