Looking to increase its presence in the workwear-apparel market, major clothing brand company VF Corp.announced earlier this week that it will purchase Williamson-Dickie Manufacturing Co. in an $820 million cash deal. This announcement follows on the heels of other company-wide changes, mainly to release a group of luxury brands and a licensed sportswear company to focus its resources on career apparel — a $30 billion a year industry. CFO Scott Roe indicated the buyout marks another step in a series of changes the company has set in motion to improve its position within the market.
Photo Source: https://www.instagram.com/dickies/
Known for its clothing brands like The North Face, Timberland, and Nautica sportswear, VF Corp. expects to increase sales in the areas of health care and service apparel, while also expanding operations of manufacturing plants in Mexico and Honduras. Analysts expect VF’s purchase of Williamson-Dickie and its 400 retail stores in more than 100 countries to boost profitability and continue corporate momentum to lead its competition. VF’s stock is already up 17.7% this year. Read more here.