US apparel and footwear giant VF has agreed to sell its Dickies brand to Bluestar Alliance for $600m in cash.
Owner of brands such as The North Face and Vans, VF has been working to stabilise its business after experiencing difficulties across several of its brands.
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The transaction, expected to close by the end of 2025, is expected to reduce VF’s debt levels and support its growth on a pro-forma basis, according to VF president and CEO Bracken Darrell.
He stated: “Dickies is an iconic American workwear brand with a bright future, and I am confident that under Bluestar Alliance’s ownership, it will continue to improve and realise its significant growth potential.”
Founded in 1922, Dickies is known for its workwear that combines functionality with style and is distributed in 55 countries. It was acquired by VF in 2017 for $820m.
Darrell added: “I want to thank the entire Dickies team for their strong commitment to transforming the brand.”
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By GlobalDataGlobal brand management company Bluestar Alliance has been interested in the Dickies brand for several years.
Commenting on the deal, Bluestar Alliance CEO Joseph Gabbay said: “Since 1922, Dickies has provided hard-wearing, long-lasting and comfortable clothes, cementing its status as a storied brand in performance workwear. We have followed the brand for many years and have a deep appreciation for its history and legacy, which VF Corporation has successfully begun to rebuild over the past few years.
“We are committed to supporting the Dickies brand’s growth by leveraging our consumer insights and operational excellence to unlock its full value for all stakeholders.”
Completion of the deal is subject to closing conditions and regulatory approvals.
UBS is acting as financial adviser to VF, with Davis Polk & Wardwell providing legal counsel.
VF reported revenues of $1.90bn in the first quarter (Q1) of fiscal 2025 (FY25), down 9% from $2.08bn in Q1 FY24.
During the quarter, revenue of The North Face and Vans declined 3% and 21% respectively compared to the same quarter of the previous year.
The company’s operating loss for the quarter ending 29 July 2024 was $239.89m, against a loss of $8.99m in Q1 FY24.
