VF Corp Has No Plans To ’Disrupt’ Supreme Or Change Its Prices

V.F. Corp. (VFC) on Monday acquired New York-based apparel brand Supreme for $2.1 billion. However, even with the acquisition, fans of the clothing brand shouldn’t expect much change.

In an interview with CNBC, V.F. CEO Steve Rendle said that his philosophy is to not change brands but to let brands focus on serving their customers.

Rendle added that as the parent company to Supreme it's their job to provide support to help the brand increase growth. Rendle and V.F. are not expected to deviate from Supreme's strategy and tactics.

"We will leave them very much alone," Rendle said. "Their strategy is very clear, their operating principles have led them to be extremely successful. We are here to support that long-term growth and by no means to disrupt it."

Rendle also told Bloomberg that he hopes to improve online sales, noting Supreme’s “agility” in connecting with customers.

“We’ve been on a journey the last four years to evolve our portfolio to really align with where we saw the market and more importantly the consumer going,” Rendle said. “Supreme fits so well into our evolved portfolio.”

Supreme is known for its streetwear, scarcity-based marketing, and publicity stunts in which it puts its logo on objects like bricks and crowbars that now sell for hundreds of dollars.

In a cash deal, Denver-based V.F. Corp. acquired a majority stake from a combination of the private-equity firms including The Carlyle Group, Google Partners, and many smaller investors, Bloomberg reported. The Carlyle Group bought a roughly 50% stake back in 2017 for $500 million, doubling their investment with this latest sale.

The deal for Supreme is expected to be completed by the end of the year. It is the largest acquisition for V.F. since 2011 when it acquired Timberland for $2.3 billion. V.F. also owns Vans and North Face.

Supreme’s corporate leadership will remain in place under the company’s founder James Jebbia, who will receive a portion of the profits from the deal in equity over time, the Wall Street Journal reported.