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VF Corp (VFC; Baa3 Neg/BBB- Neg) Sells Supreme for $1.5b

CONSUMER CYCLICALS

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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