Fruit Of The Loom To Buy VF Intimate Apparel Business
“Our intimates business has been a positive and important contributor to VF’s success over our 100-plus year history,” said Mackey J. McDonald, chairman and CEO, VF Corp. “But the time has come to strategically rebalance our portfolio and to focus our energies and resources on the many growth opportunities across our Jeanswear, Outdoor, Imagewear and Sportswear businesses.”
VF Corp. will use revenues from the sale, subject to customary closing conditions and government approval, to repurchase shares. The acquisition is expected to close in the first quarter of 2007.
Fruit of the Loom will operate these businesses, which generated more than $800 million in revenues for VF Corp. in 2006, as a wholly-owned subsidiary, Vanity Fair Brands. VF Corp.’s current intimate apparel management team will remain in place in the businesses’ current headquarters in Alpharetta, Ga., and Spain.