Streetwear brand Supreme sold to EssilorLuxottica for US$1.5b
EssilorLuxottica, the Franco-Italian eyewear giant, has agreed to acquire US streetwear brand Supreme from VF Corporation for $1.5 billion.
Transaction snapshot
Deal value: US$1.5 billion
Deal multiples: N/A
Deal type: Acquisition
Investors: EssilorLuxottica
This marks EssilorLuxottica's first expansion beyond eyewear and lenses. The company aims to tap into Supreme's young, tech-savvy customer base, particularly in China, Japan, and South Korea.
Supreme, founded in 1994 as a skateboarding and urban fashion label in New York, operates a direct-to-consumer online business and has 17 global stores. VF Corporation had acquired Supreme four years ago for $2.1 billion.
EssilorLuxottica plans to expand Supreme's eyewear line, launch Supreme-Meta smart glasses, and use Supreme's customer data to target new consumers.
The deal happened quickly, as VF was under pressure to divest its "iconic asset". VF's shares have fallen about 25% over the past year, facing pressure from activist investor Engaged Capital.
Separately, EssilorLuxottica is buying an 80% stake in Heidelberg Engineering, a German company specialising in diagnostic solutions for clinical ophthalmology.
EssilorLuxottica's shares fell more than 4% following the announcement, leaving them up 8.5% over the past 12 months. The company owns brands such as Ray-Ban and Oakley and was created in 2017 through a €50 billion merger.
This acquisition aligns with CEO Francesco Milleri's growth strategy, which focuses on embedding technology and expanding functions like hearing aids in eyewear products.
