VF Corp., which manufactures footwear, clothing and accessories, has agreed to acquire New Zealand-based Icebreaker Holdings Ltd. for an undisclosed amount, according to a release.
The Icebreaker outdoor clothing brand was founded in 1995 and has 350 employees with its clothing sold in 47 countries. Icebreaker’s product line is made with plant-based fibers, recycled fibers and Merino wool — a breed of sheep domesticated in New Zealand and Australia.
Icebreaker has produced about $150 million in revenue in the past 12 months. The acquisition is expected to be immediately accretive to VF’s earnings when the deal closes in early 2018.
“Bringing the Icebreaker brand into the VF portfolio is a special opportunity,” said Steve Rendle, president and CEO of VF Corp., in a statement. “We will have unmatched capabilities that will strengthen our ability to create innovative and sustainable natural fiber products across our brand portfolio, especially in VF’s Outdoor and Workwear brands.”
It’s the second acquisition for the company in the past four months. In August, the company 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.
Founded in 1899, Greensboro-based VF produces brands such as Vans, The North Face, Wrangler and Lee.
VF Corp.’s third quarter earnings increased to $3.5 billion, up 5 percent from the $3.2 billion third quarter revenue in 2016.
The company’s shares were trading at $70.09, up from Friday’s open at $69.93.