VF Corp. is finally jettisoning its occupational workwear brands to a subsidiary of Redwood Capital Investments after announcing plans for a sale in January last year.
On Wednesday, the apparel giant confirmed a binding agreement to hand Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small over to the private investment firm, headquartered in Hanover, Md. Dickies and Timberland PRO, both popular brands with consumer appeal, remain in VF’s Work portfolio.
The deal “reflects our continued focus on transforming VF into a more consumer-minded and retail-centric enterprise while further simplifying our portfolio and operating model,” said Steve Rendle, chairman, president and CEO of the Denver-based clothing company, which didn’t disclose the terms of the sale that’s expected to close in Q1 of fiscal 2022.
The nine brands leaving the VF umbrella outfit millions of workers in the industrial, service and government sectors and are primarily distributed through business-to-business channels. Together, they drove approximately $865 million of VF’s fiscal 2019 revenue and roughly 50 percent of Work segment revenue. The business is primarily based in the U.S., with customers including top U.S. government agencies and Fortune 100 companies, VF added, noting the deal is subject to customary closing conditions, including regulatory approvals.
When VF first aired its intentions to whittle down the Work group, Rendle last year described the segment’s occupation portion as a compelling business “marked by a strong and consistent financial profile and valuable customer relationships.” The newly streamlined division, it added, will focus on the growth-oriented active, outdoor and work categories.
“We are pleased to have reached this agreement with Redwood Capital Investments, Rendle said. “They are an ideal owner to guide these brands and businesses into their next phase of growth.”