VF Corp., the parent of Costa Mesa-based Vans Inc., said Monday it will buy Supreme.
The New York skate brand, started in 1994, is one of the buzziest names in streetwear that’s been able to bridge the category with luxury, via a scarcity model that’s kept a tight hold on its product distribution in addition to collaborations such as its 2017 link with Louis Vuitton.
Supreme’s no stranger to VF having collaborated with its brands in the past, including Vans, The North Face and Timberland.
Denver-based VF (NYSE: VFC) said it expects Supreme to bring in a minimum of $500 million in revenue to its fiscal 2022 results.
VF Chairman, President and CEO Steve Rendle said Supreme will help “further accelerate VF’s hyper-digital business model transformation.”
The merger agreement is expected to close this year.
Supreme founder James Jebbia and senior leaders are expected to remain at Supreme, which will also keep its New York headquarters.
Investors sent VF shares up 14% in midday trading Monday to $79.93 for a market cap of $31 billion.