OIO gives green light for Icebreaker sale to US corporation

WELLINGTON: Icebreaker Holdings has been sold to USbased VF Corporation for at least $100 million after the Overseas Investment Office approved the deal, earlier this week.

In a media release, North Carolinabased VF Corp said the OIO signed off on the transaction, which completed the transaction.

The acquisition ‘‘is an ideal complement to VF’s Smartwool brand, which also features merino wool in its clothing and accessories. Together, the Smartwool and Icebreaker brands will position VF as a global leader in the merino wool and natural fibre categories.’’

The brand is expected to be immediately accretive to VF’s earnings per share, it said.

Icebreaker said it was ‘‘incredibly excited by the new opportunities for Icebreaker’’.

Last year, the New Zealand merino wool outdoor clothing company confirmed the deal would need OIO approval due to the size of the transaction, implying a minimum value of at least $100 million, although the terms of the deal have not been disclosed.

Icebreaker had annual sales of $220 million in the last financial year, of which 86% were in offshore markets, and its own outlets and ecommerce sales made up 32% of sales, according to the company’s latest statement.

NYSElisted VF Corp has a market capitalisation of around $US29.5 billion ($NZ40.6 billion) and its portfolio includes The North Face, Timberland, SmartWool, Vans, Wrangler and Lee.

The company lifted 2017 revenue 7% to $US11.8 billion generating a profit of $US615 million.

— BusinessDesk