lunes, 13 de junio de 2011

Timberland to be bought by Wrangler owner VF for $2bn

 Timberland boots Timberland is best known for its rugged boot VF Corporation has announced a $2bn (£1.2bn) deal to bring together some of the best-known outdoor and action sports brands.

The company that owns Wrangler jeans has agreed to buy Timberland, which is famous for its leather boots.
Timberland will join a stable that includes such brands as The North Face, Vans, Reef, Jansport and Eastpak.
VF said that if the deal is approved by shareholders and regulators, it should be completed by the end of September.
It added that the agreement had been approved unanimously by the boards of both companies.
'Unique positioning' VF said it would be targeting revenue growth of 10% a year at Timberland, which will continue to be based in New Hampshire.
"We believe the unique, rugged outdoor positioning of the Timberland brand will perfectly complement the premium, technical positioning of The North Face brand," said Eric Wiseman, VF's chief executive.
VF will pay $43 for each Timberland share, which is a 43% premium above its closing price on the New York Stock Exchange on Friday.
It said the acquisition should boost its revenues this year by $700m.
Timberland shares had declined 34% since early May when its results were worse than had been expected. There was also concern about rising costs in the current year, which were expected to hit profit margins.