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Free AccessVF Corp (VFC; Baa3 Neg/BBB- Neg) Sells Supreme for $1.5b
EssilorLuxottica (EFFP; A2/A) (the eyewear retailer) is buying Supreme from VFC for $1.5b cash.
- Expected to close in CY24 subject to regulatory approvals
- Will be dilutive to FY25 EPS
Reminder Supreme was already rumoured to be under sale and is one of the few that was growing last quarter; mgmt calling it out as a "strong performer".
$1.5b sale price compares with $2.1b purchase price in late 2020. At which time it was expected to contribute "at least $500m" in revenues.
Still the sale will cover most of the $1.75b dollar debt ahead of the €26s (at Z+150). Might be a invitation for former to come in, we would NOT read this as positive for the rest of the curve.
Presser here.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.