Skate brand Supreme is set to be acquired by VF for around $2.1 billion.
According to Retail Dive, VF predicts Supreme could become a billion-dollar brand. Currently, the brand is the most popular in the U.S. and Japan, with only 12 stores running globally. VF plans to expand more broadly across Asia, particularly China.
Steve Rendle, chief executive officer, VF, says he plans on opening more locations in these areas and wherever proven fans of the brand exist.
“We are thrilled to welcome Supreme to the VF family and to build on our decades-long relationship as we create value for all of our stakeholders,” says Randle. “VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth. 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 and Supreme plan on closing the deal later this year, and VF expects Supreme to contribute at least $500 million in revenue to its portfolio during the next fiscal year.
Supreme opened in the mid-90s as a skateboarding shop in New York City. Since then, the Supreme brand has skyrocketed in popularity and has ended up collaborating with the likes of brands like Nike and Pat McGrath Labs.