VF Corp. Buying Dickies
Steve Rendle, president and CEO of VF, said the acquisition "combines two great companies and a group of iconic brands to create a global leader in workwear with approximately $1.7 billion in annual revenue. We look forward to welcoming Williamson-Dickie and its 7,000 dedicated employees to the VF family."
Greensboro, N.C.-based VF Corporation, a leader in branded lifestyle apparel, footwear, and accessories, is acquiring Williamson-Dickie Mfg. Co., a family-owned, private workwear company that is based in Fort Worth, Texas. The companies announced Aug. 14 they have signed a definitive merger agreement. VF said the acquisition creates a global leader in workwear, wth 2021 revenue and earnings per share now expected to exceed $15 billion and $5, respectively, while Williamson-Dickie is expected to add more than $1 billion of revenue by 2021. (The numbers exclude transaction and deal-related expenses, and the 2021 references are based on VF’s new fiscal year end, according to the VF news release.)
It says the transaction is expected to be completed early in the fourth quarter of 2017, and VF will pay Williamson-Dickie shareholders approximately $820 million in cash. On a trailing 12-month basis, Williamson-Dickie generated approximately $875 million of revenue.
Williamson-Dickie brands include Dickies®, Workrite®, Kodiak®, Terra®, and Walls®, while VF’s workwear offerings include Wrangler® RIGGS Workwear®, Timberland PRO®, Red Kap®, Bulwark®, and Horace Small®. When the transaction has closed, Williamson-Dickie will become part of VF's Imagewear coalition.
Philip Williamson, CEO of Williamson-Dickie, will remain with the company.
"When we introduced our 2021 global business strategy earlier this year, reshaping our portfolio to accelerate growth was our highest priority," said Steve Rendle, president and CEO of VF. "The acquisition of Williamson-Dickie is another meaningful step that delivers on that commitment and further demonstrates our focus on being an active portfolio manager to drive transformative growth for VF and value creation for our shareholders."
"For nearly a century, we've worked hard to judiciously grow our company and portfolio of strong brands to maintain our leadership in the global workwear marketplace," said Williamson. "Today's announcement is an authentic and natural next step as we look to combine the strengths of our two companies to create significant opportunities for our employees, vendors, retail partners, and ultimately our customers. We expect that under VF's leadership, we'll be able to experience the next wave of growth and better meet the needs of workers everywhere."
Rendle said the acquisition "combines two great companies and a group of iconic brands to create a global leader in workwear with approximately $1.7 billion in annual revenue. Williamson-Dickie has a proud history and heritage and has served a loyal consumer base for nearly 100 years. VF is the ideal steward to honor that heritage while providing a platform for growth that ensures continued success for another century. We look forward to welcoming Williamson-Dickie and its 7,000 dedicated employees to the VF family."