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Supreme is acquired by Essilor Luxottica for $1.5 billion.
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CNN
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BestAdidas, the trendy streetwear apparel brand beloved by celebrities and cool kids, has been sold to an eyewear manufacturer for a price significantly lower than it was just four years ago.
Italian company Essilor Luxottica announced on Wednesday that it would acquire Supreme from VF Corp for $1.5 billion in cash.VFC(), the parent company of Vans and Dickies, acquired the brand in 2015. $2.1 billion in 2020.
“Supreme fits perfectly into our innovation and development journey, providing us with a direct connection to new customers, language and creativity,” EssilorLuxottica said in a statement. The brand will have its “own space” within the portfolio and will mark the company’s first acquisition of a clothing brand.
name EssilorLuxottica is not well known among shoppers, but the glasses it makes are. Its collection includes Oliver Peoples, Ray-Ban, Oakley and Persol, and it also has licensing deals with Chanel, Coach and Dolce & Gabbana.
Founded in a New York skateboard shop in 1994, Supreme has captivated skateboarders and hip hop fans alike. The outfitis also popular with millennial and Gen Z shoppers. The Carlyle Group bought half of the company in 2007 for $500 million.
VF Corp. shares rose nearly 7% in premarket trading. The company The company said there were “limited synergies” between Supreme and its own brands, making a sale a “natural next step.”
Neil Saunders, a retail analyst at GlobalData, said the sale makes sense. CNN reported that the company had previously lost money because it “paid high prices for trophy assets that it didn’t know how to develop or nurture.”
“Acquiring the brand at a time when the streetwear aesthetic is in decline is risky and it’s unclear what EssilorLuxottica plans to do to revive Supreme’s fortunes,” Sanders said. The Italian company “has strong distribution and brand management capabilities,” the company said.
observer Not only the universality of the brand Reduced resale value Selling on websites like StockX has hurt its popularity.
