VF Corp. has agreed to acquire clothing manufacturer Williamson-Dickie Manufacturing Co. for $820 million in cash, expanding its own work wear clothing business.
Williamson-Dickie’s brands include Dickies, Workrite, Kodiak, Terra, and Walls. VF’s work wear offerings including Wrangler RIGGS Workwear, Timberland PRO, Red Kap, Bulwark, and Horace Small.
Philip Williamson, chief executive officer of Williamson-Dickie, will remain with the company, which is headquartered in Fort Worth, Texas. It is privately owned.
“The acquisition of Williamson-Dickie is another meaningful step that delivers on that commitment and further demonstrates our focus on being an active portfolio manager to drive transformative growth for VF and value creation for our shareholders,”said Chief Executive Officer Steve Rendle in a statement.
VF’s shares rose $1.39, or $2.26, to $62.97 in Monday morning trading.
The deal is ex0pected to close early in the fourth quarter of this year, and VF expects it will add $200 million in revenue during 2017.
VF also said it expects to earn $2.96 per share this year, up from $2.94 per share it previously projected, as a result of the acquisition.
Williamson-Dickie, which has 7,000 employees, has reported $875 million in revenue in the past 12 months, but VF expects that business to produce $1 billion in revenue by 2021.
Greensboro-based VF has more than 30 brands, including Vans, The North Face, Timberland, Wrangler and Jansport.
