VF Corp. finally pulled the trigger on an acquisition and it’s a big one.
The parent company of The North Face, Vans and Reef announced this morning it is buying outdoor company Timberland for $2 billion, or $43 per share.
Timberland is expected to generate $1.6 billion in revenue in 2011.
VF said Timberland’s rugged outdoor DNA compliments The North Face’s more technical outdoor business.
The move will propel VF’s Outdoor & Action Sports Coalition to more than 50% of total VF revenues.
VF said it will help Timberland grow 10% annually by leveraging VF’s international platforms in Europe, Asia, and Latin America and by leveraging VF’s direct to consumer platforms.
VF also plans to expand Timberland’s Smartwool apparel brand, and grow the company’s footwear and apparel offering for women.
In addition, VF believes its back end operating systems, especially with sourcing, can improve Timberland’s profitability.
Timberland can help VF with its footwear expertise, it’s experience and high penetration in Japan and by sharing its best practices in sustainability.
The deal is expected to close in the third quarter.