VF Corporation has completed its previously announced merger between Vans, Inc. and a subsidiary of VF for a total purchase price of $396 million including the cashout of stock options. The merger was approved by Vans stockholders.
As a result of the merger, Vans has become a wholly-owned subsidiary of VF and each outstanding share of Vans common stock has been converted into the right to receive $20.55 in cash from VF. Holders of Vans common stock as of the closing of the merger will receive written instructions shortly on how to surrender their shares of common stock for payment.
VF expects the addition of Vans to add approximately $200 million to sales and be neutral to earnings in 2004. VF will update its 2004 earnings guidance to reflect the recent acquisitions of the Vans, Napapijri and Kipling brands when it releases its second quarter earnings on July 21.
“This is a tremendously exciting day for both VF and Vans,” said Mike Egeck, president of VF Outdoor – North America. “The addition of Vans to our rapidly expanding Outdoor portfolio provides us with an authentic action sports lifestyle brand, a brand with global reach and excellent additional growth opportunities. We are eager to pursue two specific apparel initiatives – leverage VF's expertise in development and sourcing to supercharge Vans' sportswear offering and launch a performance snowboard apparel line. At the same time, we expect to tap into the great expertise of Vans to fuel continued growth in The North Face footwear. We expect Vans' sales to reach $500 million within the next three to five years based on the execution of these initiatives and continued strong growth in the core wholesale and retail businesses.”
VF also announced that Steve Murray, 43, has been named president of Vans, reporting to Egeck. Murray, who has been with Vans since 1998, has been serving as Chief Marketing Officer and Senior Vice President International. Gary Schoenfeld has resigned as President and CEO of Vans and has entered into discussions with VF regarding consulting projects in the action sports industry. With the exception of Mr. Schoenfeld, Vans' current executive team will remain intact.
