VF Corp. Announces Definitive Agreement to Acquire Altra®, an Athletic & Performance-Based Lifestyle Footwear Brand, From IC...
14 March 2018 - 9:55PM
Business Wire
VF Corporation (NYSE: VFC), a global leader in branded lifestyle
apparel, footwear and accessories, and ICON Health & Fitness,
Inc., a world leader in home, commercial and connected fitness,
today announced that they have signed a definitive purchase
agreement for the Altra® footwear brand. Terms of the agreement
were not disclosed.
ICON Health & Fitness launched the Altra® brand in 2011. It
is sold in 55 countries through more than 1,600 specialty retail
locations and a branded e-commerce platform (www.altrarunning.com).
Its specialized, innovative design technology for road, trail, and
lifestyle footwear has created a high-growth, award-winning brand
with a strong and dedicated enthusiast following.
“The acquisition of the Altra® brand is another example of our
efforts to reshape and evolve our portfolio of powerful brands to
align with our enterprise value creation model,” said Steve Rendle,
Chairman, President and Chief Executive Officer of VF Corporation.
“The active outdoor and performance sector is a large and
attractive growth space. The addition of the Altra® brand brings to
VF a unique and differentiated technical footwear brand and a
capability that when applied across VF’s outdoor footwear,
direct-to-consumer and international platforms will serve as a
catalyst for growth.”
On a trailing 12-month basis, the Altra® brand generated
approximately $50 million of revenue. The transaction is expected
to be completed in April 2018 and the addition of the Altra® brand
to VF’s portfolio is expected to be immediately accretive to
earnings per share.
"The Altra® brand’s truly innovative product and devoted brand
loyalists will serve it well in its new home at VF,” said Scott
Watterson, ICON's Chairman and CEO. “The sale of Altra® will
accelerate the continuing growth of our NordicTrack and
ProForm core brands, our Freemotion commercial business,
and iFit, our connected fitness subscription. The global
health and wellness industry is exploding, and we're doubling down
on that growth."
Wells Fargo Securities, LLC served as exclusive financial
advisor to VF on the transaction. Davis Polk & Wardwell LLP is
acting as legal advisor.
About VF
VF Corporation (NYSE: VFC) outfits consumers around the world
with its diverse portfolio of iconic lifestyle brands, including
Vans®, The North Face®, Timberland®, Wrangler® and Lee®.
Founded in 1899, VF is one of the world’s largest apparel, footwear
and accessories companies with socially and environmentally
responsible operations spanning numerous geographies, product
categories and distribution channels. VF is committed to delivering
innovative products to consumers and creating long-term value for
its customers and shareholders. For more information,
visit www.vfc.com.
About ICON
ICON Health & Fitness is a world leader in the home,
commercial and connected fitness with such leading brands as
NordicTrack, ProForm, iFit, Freemotion and Weider. The privately
held company holds more patents than any other in its category, and
is known for its aggressive research, development and innovation.
Founded in 1977 by Scott Watterson and Gary Stevenson, ICON is
based in Logan, Utah.
Forward-looking Statements
Certain statements included in this release and attachments are
"forward-looking statements" within the meaning of the federal
securities laws. Forward-looking statements are made based on our
expectations and beliefs concerning future events impacting VF and
therefore involve several risks and uncertainties. You can identify
these statements by the fact that they use words such as “will,”
“anticipate,” “estimate,” “expect,” “should,” and “may” and other
words and terms of similar meaning or use of future dates. We
caution that forward-looking statements are not guarantees and that
actual results could differ materially from those expressed or
implied in the forward-looking statements. Potential risks and
uncertainties that could cause the actual results of operations or
financial condition of VF to differ materially from those expressed
or implied by forward-looking statements in this release include,
but are not limited to: foreign currency fluctuations; the level of
consumer demand for apparel, footwear and accessories; disruption
to VF’s distribution system; VF's reliance on a small number of
large customers; the financial strength of VF's customers;
fluctuations in the price, availability and quality of raw
materials and contracted products; disruption and volatility in the
global capital and credit markets; VF's response to changing
fashion trends, evolving consumer preferences and changing patterns
of consumer behavior, intense competition from online retailers,
manufacturing and product innovation; increasing pressure on
margins; VF's ability to implement its business strategy; VF's
ability to grow its international and direct-to-consumer
businesses; VF’s and its customers’ and vendors’ ability to
maintain the strength and security of information technology
systems; stability of VF's manufacturing facilities and foreign
suppliers; continued use by VF's suppliers of ethical business
practices; VF’s ability to accurately forecast demand for products;
continuity of members of VF’s management; VF's ability to protect
trademarks and other intellectual property rights; possible
goodwill and other asset impairment; maintenance by VF’s licensees
and distributors of the value of VF’s brands; VF's ability to
execute and integrate acquisitions; changes in tax laws and
liabilities; legal, regulatory, political and economic risks; and
adverse or unexpected weather conditions. More information on
potential factors that could affect VF's financial results is
included from time to time in VF's public reports filed with the
Securities and Exchange Commission, including VF's Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q.
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version on businesswire.com: http://www.businesswire.com/news/home/20180314005284/en/
VF Corporation:Joe
Alkire, 336-424-7711Vice President, Investor Relations andFinancial
Planning & AnalysisorCraig Hodges, 336-424-5636Senior Director,
Corporate CommunicationsorICON Health
& Fitness:Colleen LoganVP,
Marketingclogan@iconfitness.com
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