PARIS and DENVER—EssilorLuxottica, a global leader in the optical industry, and VF Corporation, a global leader in branded lifestyle apparel, footwear and accessories, yesterday announced that they entered into a definitive agreement for EssilorLuxottica to acquire the Supreme brand from VF for $1.5 billion in cash. A New York-city based skate culture brand, Supreme was established in 1994 and has expanded into a global community, with 17 retail stores in the U.S., Asia and Europe, and an e-commerce platform across all regions. It runs a digital-first business.

The transaction is expected to close by the end of 2024, subject to customary closing conditions and regulatory approvals, and the sale is expected to be dilutive to VF’s earnings per share in fiscal year 2025. J.P. Morgan and Latham and Watkins are serving as exclusive financial and legal advisors to EssilorLuxottica on the transaction, respectively. Goldman Sachs & Co. LLC is serving as lead financial advisor and UBS Investment Bank is serving as financial advisor to VF. Davis Polk & Wardwell LLP is acting as legal advisor to VF.

“We see an incredible opportunity in bringing an iconic brand like Supreme into our company," said Francesco Milleri, chairman and chief executive officer, and Paul du Saillant, deputy chief executive officer, at EssilorLuxottica. "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," added Bracken Darrell, president and chief executive officer at 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.”

Supreme founder James Jebbia said, “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. This move lets us focus on the brand, our products, and our customers, while setting us up for long-term success.”