VF Corp., parent to The North Face, Jansport, Vans, and Eastpak brands, among others, has signed a definitive agreement to acquire Reef Holdings Corporation. Reef is currently owned by an investor group led by majority shareholder Swander Pace Capital. The company will become part of VFCs Outdoor Coalition.
Reef reportedly had sales of $75 million in 2004, excluding royalties, and is forecasting double-digit growth again in 2005. The deal should add about $45 million to VFCs top line in 2005, but is not expected to show any upside to profits for the current year. The company is forecasting accretion to EPS in 2006.
Reef will remain headquartered in San Diego, Calif. Terms of the deal were not disclosed.
SEW sees this as a great fit to the VF Outdoor Coalition mix. Apparel is clearly a big opportunity for the Reef brand and the synergies with Vans are also a nice opportunity, both culturally and operationally.
