27 Jul. 2007
VF CORP TO BUY 7FAM FOR $775 MILLIONApparel giant VF Corporation (www.vfc.com) is about to get even bigger: it announced yesterday that it was acquiring Los Angeles-based premium denim brand 7 For All Mankind (7forallmankind.com) for $775 million from founder Peter Koral and Bear Stearns Co, a private equity firm that acquired 50% of the company in 2005.
VF also announced that it will also buy lucy activewear (lucy.com), a Portland, Oregon–based women’s active brand with 50 stores in the US that generates approximately $57 million in annual revenues. VF will pay $110 million for lucy.
The two new acquisitions will form the foundation of a new brand coalition at VF: VF Contemporary Brands, which will be added to the company’s extant divisions of Jeanswear, Imagewear, Outdoor and Sportswear. Once the two deals are closed, which is expected to be by the end of August, Mike Egeck, the current CEO of 7 for all Mankind, will remain in that position but also serve as president of VF Contemporaty Brands. Koral, the current chairman of 7 for All Mankind, will act in an advisory capacity.
VF said that the new Contemporary division is expected to generate more than $350 million in annual revenues, and that it would be broadened over time with the acquisition of additional brands.
Prior to joining 7 for All Mankind last year, Egeck was president of VF’s Outdoor America’s business.
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