Giant apparel maker VF Corp. is buying two fashion companies – Seven for All Mankind LLC and Lucy Activewear Inc. – for a combined $885 million, in a move to help fuel growth in a stagnant retailing environment.
In a news release, the company said that the acquisitions will be financed through existing cash, borrowings under its existing credit facility, and placement of long-term debt. Both acquisitions are expected to be completed by the end of August.
“Our ability to identify, acquire and grow brands has been a key driver of shareholder value over the past several years, and we’re clearly maintaining this momentum,” said Mackey J McDonald, VF chairman and CEO, in a statement. “The acquisition of these high-growth, high-potential brands marks another milestone in the continuing success of our growth plan,” he added
VF is acquiring Seven For All Mankind, a denim label with an estimated $300 million in annual revenues, for $775 million. It is purchasing Lucy, a rapidly growing women’s activewear brand with about $57 million in estimated annual sales, for $110 million.
