November 9, the US sportswear giant outdoorVF CorporationOfficially announced a $ 2.1 billion acquisition of American popular street Tide brand Supreme. Supreme founder James Jebbia and the existing senior management team will remain in office. (See “gorgeous Chi” history reports:$ 2.1 billion! Supreme acquired by Vans and The North Face parent company VF Corporation) Before the end of 2020 if the transaction is completed, Supreme reach a specific target, VF will raise the price to $ 2.4 billion.

For many Chinese consumers,VF Corporation It is a strange name, but it’s a brand you must be familiar with:Vans,The North Face,Timberland,JanSport,Dickies等共19个品牌,分为户外,运动及工装三大产品线部门,覆盖服饰,鞋履,箱包等品类。2020财年VF 集团销售额为105亿美元,是当今全球最大服装集团之一。

鲜为人知的是,VF 集团最早是从一家小型手套制造商起家,在此后120余年发展历程中,通过一系列并购扩张,剥离重组,成功完成了多次转型和升级,逐渐演化为一家拥有多个强势品牌,聚焦于户外运动的全球性服饰巨头。《华丽志》将对 VF 的发展历程进行详尽的回顾,希望其与时俱进的并购发展战略能给中国同行们带来有益的启发。

How to become a new owner Supreme annual sales of billions of dollars of outdoor sports giants?

Started from the gloves, underwear transformed into a listed company

In 1899, John Barbey and a group of individual investors in Pennsylvania founded the glove manufacturing company in Reading Glove and Mitten Manufacturing Company, mainly manufacture and sale of knitted silk gloves. John Barbey is a winemaker and chief banker, responsible for management control of the company’s financial operations. In 1911, John Barbey withdrew equity from the hands of the other partners.

In 1914, the business expanded to silk underwear production, the company changed its name to Schuylkill Silk Manufacturing. Because underwear sales are very successful, John Barbey specially held a contest to name the series, the final “Vanity Fair” a win, after which the company also officially changed its name in 1919 Vanity Fair Silk Mills (referred to as Vanity Fair).

The early 1920s, due to the successful lingerie line, Vanity Fair glove stop production, focusing on the underwear business. In 1937, John Barbey’s son John Edward because of dissatisfaction with the union plant operations, when he was general manager and vice president of his choice in Monroeville, Alabama, opened a new factory. Former Pennsylvania factory in 1948 and officially closed. 1939, John Edward after his father’s death officially took over the company, led Vanity Fair to survive the economic turmoil of World War II such as, for example, because of World War II rayon silk outage switch to production of underwear (and company name will be deleted from the Silk 1942 ), and a nylon tricot innovative underwear fabrics.

In 1951, Vanity Fair for the first time, one-third of the shares on sale. In 1966, Vanity Fair was officially listed on the New York Stock Exchange. Throughout the 1950s to the early 1960s, Vanity Fair lingerie and rely on basic apparel lines achieved steady growth.

From underwear to jeans, large-scale mergers and acquisitions created a multi-brand clothing empire

John Edward’s death in 1956 marked the end of the period led Vanity Fair founder of the family. By the late 1960s, under the leadership of Manford Lee, Vanity Fair began merger expansion of the road. Manford Lee since 1959 as president, in 1965, began to serve as chairman.

In 1969, Vanity Fair acquired the first large-scale socks manufacturer Berkshire International Corporation, and later bought a pair of jeans began in 1912, the famous manufacturer H.D. Lee Company (famous jeans brand Lee’s parent company), entered the jeans market. In the same year, the company changed its name to VF Corporation (referred to as VF).

By 1977, VF to manage the growing business in overseas markets, the establishment of the International Division. In the same year Group sales of $ 470 million, a profit of $ 28 million.

1986年,VF又以7.62亿美元的价格收购服装制造及分销商 Blue Bell Inc. ,将公司规模扩大了一倍,成为全球最大的上市服装公司,Blue Bell Inc. 旗下有牛仔裤品牌 Wrangler 和 Rustler,泳衣品牌 Jantzen,工作服品牌 Red Kap和双肩包品牌 JanSport。VF也因此成为全球第二大牛仔服生产商,占据了全球牛仔服市场25%的份额。

90年代,VF 继续扩张,尤其是内衣领域,先后收购了内衣品牌 Vassarette和 Form-O-Uth,童装生产商 Healthtex,3家欧洲内衣公司Valero Group(法国),Vives Vidal(西班牙)及Jean Bellanger Enterprises(法国)。同年,VF销售额突破30亿美元大关。

1997年,在新任总裁 Mackey McDonald(1996~2008年任职)的带领下,VF 重组公司架构,将17个国内外部门划分为5大产品线部门(coalition):牛仔服,内衣,针织服,运动服和国际线。

1998年,VF 又收购了内衣制造商 Bestform Group,进一步巩固自身内衣产品线。1999年,VF发力工装领域,收购了3家工装生产商Horace Small,Todd Uniform 和Fibrotek。

How to become a new owner Supreme annual sales of billions of dollars of outdoor sports giants?

The introduction of a series of outdoor sports brand and tooling, while the acquisition side adjustment

进入千禧年,VF 的收购狂欢依然没有停止,但收购焦点逐渐向户外运动转移。2000年,VF 成功收购了牛仔品牌 Chic,H.I.S.和Gitano,专业户外品牌 The North Face 以及背包品牌 Eastpak。据悉 VF 在2000年所有收购支出约2.06亿美元,并因此负债1.07亿美元。

收购陷入财务困境,濒临破产的The North Face 是VF 在2000年的最后一笔收购,收购价为2540万美元。创办于1966年的The North Face最早是旧金山北滩的一家登山装备零售店,60年代末期开始设计生产自己的登山服及装备品牌,并在户外探险爱好者中建立起自己的一批拥趸。到20世纪90年代,The North Face的品类已从极限滑雪服拓展到运动服饰,跑鞋等,收购当时品牌年销售额约为2.4亿美元。

同年,VF集团再次调整产品线部门(coalition),成立新的部门——户外线,涵盖旗下 The North Face,Eastpak和 JanSport等品牌。同时,集团还将针织系列与制服业务合并为一个系列——形象服装(Imagewear)。

In 2003, VF intention to enter into the higher end of the market, for $ 585.6 million acquisition of Chinese designer Zhu Qin Qi in the United States founded the casual clothing brand Nautica. In the same year, VF also acquired the US high-end menswear brand John Varvatos. Both brands are included in the Group’s sports series.

2004年,通过收购意大利休闲服品牌 Napapijri,休闲箱包品牌 Kipling 和运动品牌 Vans,VF进一步壮大了旗下户外品牌队伍。Vans 品牌于1966年在美国加州阿纳海姆市起家,早期就凭借“华夫底”鞋的耐磨性和高性价比成为滑板选手的不二之选。虽然20世纪80年代 Vans 因盲目品类扩张一度走向衰退,但很快经过破产重组得到重振,于1991年上市,后在2004年被VF 集团以3.96亿美元收购。收购当时,Vans 品牌销售额为3.6亿美元,经营利润为400万美元。

How to become a new owner Supreme annual sales of billions of dollars of outdoor sports giants?

2005年,VF 进一步丰富运动线,将专业冲浪服饰品牌 Reef 和哈雷摩托车专用服装授权生产商 Holoubek收入囊中。2007年,VF又接连收购户外旅行品牌 Eagle Creek,美国职棒大联盟等知名体育联盟用服装供应商 Majestic Athletic,高端牛仔品牌 7 For All Mankind(交易额7.75亿美元),运动服品牌 Lucy Activewear(交易额1.1亿美元),女性时尚运动服品牌 Ella Moss和Splendid。

In 2011, VF Group for $ 2.3 billion acquisition of outdoor brand Timberland, to expand its product line of outdoor sports. Timberland 2010 sales of $ 1.4 billion.

2017, VF Group announced a $ 820 million cash acquisition of American Apparel Williams-Dickie, and it’s included in the service product line tooling department. Williams-Dickie was established in 1922, is a family business, headquartered in Texas, Fort Worth, is one of the world’s largest manufacturer of tooling service. The company’s brands include: Dickies, Workrite, Kodiak, Terra and Walls etc., was acquired sales of $ 875 million. (See “gorgeous Chi” history reports:Vans 母公司, 美国服饰零售巨头 VF 计划 8.2亿美元现金收购 Dickies母公司 Williams-Dickie)

Then in March 2018, VF will be sluggish performance of casual clothing brand Nautica brand was sold to American management company Authentic Brands. (See “gorgeous Chi” history reports:US brand management company Authentic Brands proposed acquisition of US casual clothing brand Nautica)此后又陆续出售了其他非核心品牌。

2018年上半年,VF 集团还收购了两个新的户外运动品牌:新西兰户外运动服装品牌 Icebreaker和运动鞋品牌 Altra。Icebreaker 成立于 1995年,以美利奴羊毛,植物纤维和再生纤维为基础的产品系列而闻名,收购当时年销售额约1.5亿美元,Altra 于2009年成立,2011年被 Icon Health & Fitness 收购,专门设计适用于跑步,徒步的专业运动鞋和生活方式鞋款,收购当时年销售额为5000万美元。(详见《华丽志》历史报道:The North Face 和 Vans 的母公司,美国服饰零售巨头 VF 收购新西兰户外运动服装品牌 Icebreaker,Vans 和The North Face 的母公司,美国服饰零售巨头VF收购创新运动鞋品牌 Altra)

Give up the underwear business, peeling denim business

2001年年底,为了应对美国经济衰退对零售市场的打击,VF启动了一次重大重组,关闭三项业绩不佳的业务:自有针织业务,Fibrotek工作服品牌和 Jantzen 泳装业务。此次重组还包括关闭30多家美国工厂,将生产基地从美国转移至成本更低的亚洲,非洲等地。

In 2005, VF’s lingerie brand Vanity Fair will sell for $ 350 million to the underwear manufacturer Fruit of the Loom, the underwear that had bid farewell to the core business areas.

2018年末,VF 又宣布将旗下牛仔业务剥离出来,成立新公司 Kontoor Brands Inc.独立上市,Kontoor 将包含VF 旗下的三个牛仔品牌——Lee,Wrangler 和 Rock&Republic,以及 VF Outlet 业务。据VF 估计,Kontoor 的牛仔业务年销售额将超过25亿美元。2019年5月,Kontoor 公司在纽约纽约证交所正式上市。(详见《华丽志》历史报道:American Apparel retail giant VF is stripped denim business establishment of the new company –Kontoor Brands)

How to become a new owner Supreme annual sales of billions of dollars of outdoor sports giants?

“Active brand manager”

2017年,VF 曾发布新五年成长计划,指出未来集团仍将把并购作为首要任务,首席财务官 Scott Roe 称公司是”Active brand manager”,表现好的品牌增加投资,但表现不佳的业务也将被替代。

从近几年业绩来看,VF 集团专注于户外运动品类的战略是相当成功的,与新一代消费者生活方式的转变不谋而合。2017~2019财年,VF 集团销售额从118亿美元增至138亿美元(含已剥离的牛仔业务),营业利润从15亿美元增至17亿美元。

From the point of view of the development of a single brand, VF Group’s growth strategy also received practical results: Vans was acquired in 2004 VF, which is only $ 360 million in sales, operating profit was $ 4.0 million, gross margin was 48% in fiscal 2018 Vans sales of more than $ 3 billion, operating profit of more than $ 700 million, gross margin over 60%. According to the latest official annual financial report revealed that in fiscal year 2019 Vans’ global sales surge 24% year on year, brand sales of nearly $ 4 billion.

VF acquisition Supreme seemingly suddenly, in fact, the two sides have already established a cooperative relationship for many years.

Supreme 品牌基因中强烈的滑板文化,街头属性与 VF 的主力品牌 Vans 堪称一脉相承。

How to become a new owner Supreme annual sales of billions of dollars of outdoor sports giants?

Vans 本就是滑板群体带火的品牌,早在20世纪90年代就建立了全球最大的滑板公园(上图),并开始为世界业余滑板锦标赛等各种赛事活动提供赞助。Supreme 则由来自英国的滑板爱好者James Jebbia 创办于1994年,1998年开始生产滑板,曾与多名艺术家及品牌都合作推出过限量滑板系列。2019年1月,非常罕见的由私人收藏的全套 Supreme 滑板系列“20 Years of Supreme”在苏富比拍卖行以80万美元的价格成交。(详见《华丽志》历史报道:History of the most complete series of Supreme skateboard private collection at Sotheby’s online auction to $ 800,000 deal)

1996年,Supreme 和 Vans 首度联名,以迷彩主题推出 Old Skool系列,此后双方便签订了长达20年的合作契约,从2007年春夏首个联名夹克 Summit Series Jacket 系列一直延续到最新的2020年秋冬系列。

How to become a new owner Supreme annual sales of billions of dollars of outdoor sports giants?

Supreme continuous cooperation has also been a dozen years and The North Face.

How to become a new owner Supreme annual sales of billions of dollars of outdoor sports giants?

VF Supreme expected to bring more than $ 500 billion in sales during fiscal year 2022 for the Group. In addition, VF also said that after the completion of this acquisition, Supreme will still be outside the joint cooperation and VF Corporation brand.

For the financial markets after the acquisition VF reported a positive attitude, news release, as of the close on November 9, VF Corp. shares rose 11 percent to $ 77.81 per share, the current market value of $ 30.3 billion.