VF to sell intimate apparel business for $350M
GREENSBORO - VF Corp. has agreed to sell its intimate apparel business to Fruit of the Loom Inc. for $350 million in cash.
VF's intimate apparel business includes brands as Vanity Fair, Lily of France, Vassarette, Bestform and Curvation in the U.S., and others in Europe, according to a news release.
The deal is subject to government approvals and closing conditions and is expected to be completed in the first quarter. VF plans to use the proceeds from the sale to repurchase shares this year.
"This marks an important chapter in VF's ongoing transformation toward becoming a higher growth, higher margin lifestyle company - and another example of our willingness to take bold steps to enhance total shareholder value," stated Mackey J. McDonald, VF's chairman and CEO. "Our intimates business has been a positive and important contributor to VF's success over our 100-plus year history. 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."
Fruit of the Loom plans to operate these businesses as Vanity Fair Brands, a wholly-owned subsidiary.