The workwear market -- an increasingly competitive and highly fragmented space -- just saw a bit more consolidation with the announcement today from VF Corp that it will acquire Dickies brand parent company Williamson-Dickie.
The price tag -- $820 million cash -- is expected to be paid to Williamson-Dickie shareholders by Q4 this year, and as a result of the deal, VF Corp has raised its 2017 outlook and increased its financial targets for the end of fiscal year 2021. The Dickies brand and its sister companies are expected to generate more than $1 billion in annual revenue under the new VF Corp umbrella.
“This 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," said President and Chief Executive Officer of VF Steve Rendle. "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."
Parent company to brands like Vans, as well as Timberland and Wrangler, VF Corp is no stranger to the space. The company called the $30 billion workwear market, “large, growing and under-penetrated,” and says its expects the addition of Dickies to double VF’s workwear business, provide scalability and provide access to new growth pools.
Williamson-Dickie was founded in Forth Worth, Texas, in 1922, and has remained a private, family-owned company. It currently has a presence in more than 100 countries with its portfolio of brands that include Kodiak, Walls Outdoor Goods, and Terra. On a trailing 12-month basis, Williamson-Dickie generated approximately $875 million of revenue.
The company’s current CEO Philip Williamson will remain with the company in Fort Worth, Texas. More details can be found at VF Corp’s investor relations page.
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