EssilorLuxottica to Acquire Supreme from VF CorporationEssilorLuxottica to Acquire Supreme from VF Corporation

EssilorLuxottica, a global optical industry company, and VF Corporation, a branded lifestyle apparel, footwear and accessories company, have announced an agreement for EssilorLuxottica to acquire the Supreme brand from VF for $1.5 billion in cash.

“We see an incredible opportunity in bringing an iconic brand like Supreme into our Company,” say Francesco Milleri, chairman and chief executive officer, and Paul du Saillant, deputy chief executive officer, EssilorLuxottica in a joint statement. “It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity. 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 will be well-positioned to leverage our Group’s expertise, capabilities and operating platform.”

“Under VF, Supreme expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth,” says Bracken Darrell, president, chief executive officer, VF. “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. Alongside the other notable brands in EssilorLuxottica’s portfolio, Supreme and its talented team will be well-positioned for continued success. While we will always look to adjust the VF portfolio from time to time, this transaction gives us increased balance sheet flexibility. It also supports our overall program to better position the company for long-term growth and more normalized debt levels.”

“In EssilorLuxottica, we have a unique partner that understands that we are at our best when we stay true to the brand and continue to operate and grow as we have for the past 30 years,” says James Jebbia, founder, Supreme. “This move lets us focus on the brand, our products and our customers while setting us up for long-term success.”

The transaction is expected to close by the end of 2024. The Supreme brand runs a digital-first business and 17 stores in the U.S., Asia and Europe.