Founded in 1994 in a small boutique, the streetwear clothing line now weighs more than 2 billion. The transaction should be finalized by the end of the year.
The American textile group VF Corporation (Vans, Timberland) will buy the New York streetwear brand Supreme for around 2.1 billion dollars (1.9 billion francs), according to a statement released Monday. To acquire a stake, VF Corp will acquire the shares of the investment companies Carlyle Group and Goode Partners, Supreme shareholders since 2017.
This is another episode in the rise of the American-British entrepreneur James Jebbia, founder of Supreme, who will remain with the company once the transaction is finalized. Starting from a small boutique, opened in 1994 in Soho, he made Supreme a global brand, based on a concept associated with a lifestyle: that of skaters with a rebellious image.
James Jebbia is one of the first to have gone beyond the limits that traditionally confined brands in the world of skateboarders, to become a benchmark of fashion in general. The famous Supreme logo, in white on a red background, has toured the world.
In recent years, Supreme has notably been able to develop ad hoc collaborations with Nike, Louis Vuitton or several brands of the VF Corporation group, such as Vans or Timberland. In just three years, since the acquisitions of Carlyle Group and Goode Partners, Supreme’s valuation has more than doubled.
Turnover of 500 million per year
According to the investor presentation released on Monday, Supreme currently has annual sales of over $ 500 million, up from around $ 200 million just four years ago. It has 12 stores around the world and makes 60% of its sales online.
Based in Denver, VF Corporation is a more than a century old textile group that has acquired, over the past twenty years, several big names in mainstream fashion, including Timberland, The North Face and Lee and Wrangler jeans. In 2004, they also got their hands, relatively inexpensively ($ 396 million), of the shoe brand Vans, which they made a juggernaut, which today generates nearly $ 2 billion in sales. annual business (1.9).
The acquisition, which should be finalized at the end of 2020, will be financed in cash and by short-term debt.