Wrangler owner to acquire Timberland

Bootmaker Timberland is to be bought by the owner of the Wrangler, Nautica and North Face clothing brands, in a $2bn (€1.4bn) deal unveiled today.

Timberland has agreed a deal with VF Corporation after it offered $43 (€29.91) per share, a premium of 43% to the latest closing price. They expect to complete the deal in the third quarter of 2011.

North Carolina-based VF plans to make Timberland part of its outdoor and action sports business, which also includes brands such as Vans, Reef, Jansport, Eastpak.

VF said the acquisition was “transformative” and would create a $10bn (€6.95bn) (£6.2bn) global clothing and footwear “powerhouse”.

Timberland is expected to generate about $1.6bn (€1.11bn) in sales in 2011, with about half of this coming from markets outside the US.

Eric Wiseman, chairman and chief executive of VF, said the “unique, rugged, outdoor” Timberland brand will complement The North Face. VF will also benefit from Timberland’s presence in international markets such as Japan, he added.

VF thinks it can grow Timberland’s annual revenues by about 10% a year by increasing international sales and aggressively expanding its women’s footwear and clothing business.

Timberland, which also owns the Earthkeepers and Smartwool brands, rose to prominence in the 1970s with its waterproof heavy duty boots and, later, boat shoes.

It now also makes a range of outdoor clothing, including jackets, hats and bags.

Its goods in the UK are sold through its website and more than 20 Timberland stores.

The company suffered a sales drop in the recession but results have improved in recent months. However, its shares plummeted last month when its first quarter results disappointed investors.

Timberland will continue to be based in New Hampshire and its chief executive Jeffrey Swartz said the company’s unique culture and DNA would be protected following the deal.