by Stephen Garner

VF Corporation has reached a new deal to acquire cult streetwear brand Supreme from its current investors, The Carlyle Group and Goode Partners, for $2.1 billion.

The acquisition follows a long-standing relationship between the two companies, with Supreme being a regular collaborator with multiple VF Corp-owned brands including The North Face, Vans, and Timberland.

Supreme brand’s founder James Jebbia and the senior leadership team of the brand will remain with the company, headquartered in New York City, New York, and the transaction is expected to be completed late in calendar year 2020, subject to closing conditions and regulatory approval.

According to a statement released on Monday morning, VF expects Supreme to contribute at least $500 million of revenue in fiscal 2021. The company said that the Supreme brand offers a $1 billion global opportunity over time through international and direct-to-consumer expansion, core pillars of VF’s 2024 future strategy.

“We are thrilled to welcome Supreme to the VF family and to build on our decades-long relationship as we create value for all of our stakeholders,” said Steve Rendle, VF’s chairman, president, and chief executive officer. “VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth. The acquisition of the Supreme brand is further validation of our vision and strategy to further evolve our portfolio of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector. The Supreme brand will further accelerate VF’s hyper-digital business model transformation and will be a meaningful driver of VF’s commitment to top quartile total shareholder return and long-term value creation.”

“We are proud to join VF, a world-class company that is home to great brands we’ve worked with for years, including The North Face, Vans, and Timberland,” said Jebbia. “This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”

Supreme opened its doors in April 1994 on Lafayette Street in downtown Manhattan and became the home of New York City skate culture. At its core were a group of neighborhood kids, New York skaters, and local artists who became the store’s staff, crew, and customers. While it developed into a downtown institution, Supreme established itself as a brand known for its quality, style, and authenticity. Over 25 years, the Supreme brand has expanded from its New York City origins into a global community.