The iconic streetwear brand Supreme will soon be acquired by the apparel conglomerate VF Corp for $2.1 billion with room for $300 million in additional payment "subject to satisfaction of certain post-deal closing milestones," according to CNBC.
VF Corp is over a century old and owns other popular brands including Vans, Timberland and The North Face, which have all collaborated with Supreme dating back to the mid-90s. For example, the latest Supreme x The North Face collection includes a special Summit Series Himalayan Parka, a Mountain Jacket, a Hooded Fleece Jacket and more.
Steve Rendle, the Chairman, President and CEO of VF Corp, said this deep-seated relationship made for talks that weren't really "competitive." He added, "This was really two businesses coming together and talking about an opportunity and how to unlock value for both sides."
Private equity firm Carlyle Group bought a 50% stake in Supreme three years ago, valuing the box logo makers at $1 billion. This year, Supreme is on pace to collect more than $500 million in revenue.
Looking ahead, Rendle sees "no reason why [annual revenue] can't exceed [a] billion dollars." Big bag talk!
One of the biggest questions on the minds of Supreme's loyal customers has to be whether more corporate involvement will impact the product and ethos. After all, Supreme markets itself as a skateboard company first.
Supreme's celebrated founder James Jebbia, who opened the first Supreme store 26 years ago with a $12,000 investment, claimed in a statement, "This partnership will maintain our unique culture and independence while allowing us to grow on the same path we’ve been on since 1994."