VF to sell intimate apparel business to Fruit of the Loom
24/01/2007
Branded lifestyle apparel company VF Corporation, whose brands include Wrangler, Lee, The North Face, Nautica, Vans and JanSport, has signed a definitive agreement to sell its global intimate apparel business to Fruit of the Loom, Inc., a subsidiary of Berkshire Hathaway, Inc. for $350 million in cash. VF's intimate apparel business includes Vanity Fair, Lily of France, Vassarette, Bestform and Curvation in the
The agreement is subject to government approvals and customary closing conditions and is expected to be completed in the first quarter of 2007
Fruit of the Loom plans to operate these businesses as Vanity Fair Brands, a wholly-owned subsidiary, under the supervision of Curt Holtz, president of VF's Intimates coalition, from the current headquarters in
VF's Intimates business generated over $800 million in revenues and approximately $50 million in operating income on a global basis in 2006, representing 12% and 6% of its total 2006 revenues and operating income, respectively.
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