Vans and Timberland owner to buy streetwear brand Supreme for $2.1 billion

U.S. VF Corporation will buy streetwear brand Supreme for $2.1 billion, according to Bloomberg. The deal is expected to close by the end of 2020 and will be the largest for VF since it bought Timberland in 2011 for $2.3 billion.

Supreme is now owned by private equity firm Carlyle Group and a number of other investors, including Goode Partners. In 2017, Carlyle paid $500 million for about 50% of Supreme, and it could sell its stake for twice as much, Bloomberg notes.

In addition to Timberland, VF also owns the Vans and North Face brands. The company expects the purchase of Supreme to marginally increase its revenue and adjusted earnings per share by March 2021. Supreme is projected to earn at least $500 million in the next fiscal year.

Shares of VF Corporation jumped 8.3% on news of the deal.

Supreme was founded in 1994 by designer James Jebbia. He and the top management of the brand after the deal will retain their positions and will lead the creative process. Supreme has 12 stores in New York, Los Angeles, Paris, London and Tokyo. The brand is primarily focused on the culture of skateboarding, hip-hop and rock music.