The past 12 months has been filled with growth for Vans, The North Face and Reef parent company VF Corp.
The North Carolina based company, on the heels of acquiring Dickies and Icebreaker within the past seven months, just announced it has purchased Altra footwear, a company focused on trail and road running footwear.
The purchase price and terms of the deal with former Altra owner ICON Health and Fitness were not released, however VF Corp says the acquisition signifies the evolution of its portfolio to include more active and outdoor brands – a global market that represents massive future growth.
Located in Logan, Utah, ICON Health & Fitness launched the Altra brand in 2011. It is sold in 55 countries through more than 1,600 specialty retail locations and a branded e-commerce platform. ICON also owns companies such as NordicTrack, ProForm, iFit, Freemotion and Lotus yoga gear.
"The acquisition of the Altra brand is another example of our efforts to reshape and evolve our portfolio of powerful brands to align with our enterprise value creation model," said Steve Rendle, Chairman, President and Chief Executive Officer of VF Corporation. "The active outdoor and performance sector is a large and attractive growth space. The addition of the Altra brand brings to VF a unique and differentiated technical footwear brand and a capability that when applied across VF's outdoor footwear, direct-to-consumer and international platforms, will serve as a catalyst for growth."
On a trailing 12-month basis, the Altra brand generated approximately $50 million of revenue. The transaction is expected to be completed in April 2018 and the addition of the Altra brand to VF's portfolio is expected to be immediately accretive to earnings per share.
“Altra's truly innovative product and devoted brand loyalists will serve it well in its new home at VF," said Scott Watterson, ICON’s Chairman and CEO. "The global health and wellness industry is exploding, and we’re doubling down on that growth.”
The addition of new brands under VF’s portfolio gives the company more reach into this key market, and sets them up for future growth alongside successful sister brands Vans, Reef Timberland and The North Face that speak to specific niches within active and outdoor.
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