ITALY/USA. EssilorLuxottica is set to acquire the Supreme brand from VF Corporation in a US$1.5 billion deal. This strategic move aims to leverage Supreme’s distinctive brand identity and market presence to further enhance EssilorLuxottica’s portfolio.
In a joint comment, EssilorLuxottica Chairman and Chief Executive Officer Francesco Milleri and Deputy Chief Executive Officer Paul du Saillant said: “Integrating a renowned brand like Supreme into our company presents significant opportunities. It aligns with our innovation and development goals, connecting us to new audiences and creative approaches.
“Supreme will maintain its brand identity within our portfolio, complementing our existing brands. The brand will benefit from our group’s expertise, capabilities and operational platform.”
VF Corporation President and Chief Executive Officer Bracken Darrell added: “Under VF Corporation, Supreme expanded its presence in key markets such as China and South Korea and has shown strong growth. However, given the distinct business models of Supreme and VF, our strategic review concluded there are limited synergies between the two, making a sale a logical next step.
“Supreme and its team will thrive alongside the other brands in EssilorLuxottica’s portfolio. This transaction enhances our balance sheet flexibility and supports our long-term growth strategy and financial stability.”
Supreme Founder James Jebbia commented: “EssilorLuxottica understands that our success comes from staying true to our brand while continuing to grow as we have for the past 30 years. This move allows us to focus on our brand, products and customers, setting us up for long-term success.”
The transaction is expected to close by the end of 2024, subject to customary closing conditions and regulatory approvals. Supreme operates a digital-first business model and has 17 stores across the USA, Asia and Europe.
J.P. Morgan and Latham & Watkins serve as exclusive financial and legal advisors to EssilorLuxottica. Goldman Sachs & Co. LLC and UBS Investment Bank act as financial advisors to VF, with Davis Polk & Wardwell LLP serving as VF’s legal advisor. ✈
