VF to acquire 7 For All Mankind and lucy brands
27/07/2007
Branded apparel company VF Corporation has signed definitive agreements to acquire two companies: Los Angeles-based denim lifestyle brand Seven For All Mankind, LLC, and Oregon-based women’s active lifestyle label lucy activewear, inc. at a cost of $775 million and $110 million respectively. Transactions should be completed by the end of August.
The two companies will form the foundation for a new lifestyle brand-based coalition, VF Contemporary Brands. Mike Egeck will be appointed president of this group in addition to his current role as chief executive officer of Seven For All Mankind. He will report to Eric Wiseman, president and chief operating officer of VF Corporation.
The new coalition is expected to achieve annual revenues of over $350 million, based on anticipated combined 2007 annual revenues of the two brands and revenues are expected to increase at an annual rate of 15-20% over the next five years. It is expected to contribute approximately $125 million to total revenues in 2007, reflecting a partial year of ownership of both brands. The company now expects total 2007 revenues to rise by over 14% compared with the previously anticipated 12%.Share this story:
