Icebreaker sale gets green light from regulator
Icebreaker has been sold to USbased VF Corporation for at least $100 million after the Overseas Investment Office approved the deal.
North Carolina-based VF Corp said yesterday the OIO signed off on the transaction, which completed it.
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 mer- ino 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 $100m, although the terms have not been disclosed.
Icebreaker had annual sales of $220m in the last financial year, of which 86 per cent were in offshore markets, and its own outlets and e-commerce sales made up 32 per cent of sales, according to the company’s latest statement.
NYSE-listed VF Corp has a market capitalisation of around US$29.5 billion ($40b) and its portfolio includes The North Face, Timberland, SmartWool, Vans, Wrangler and Lee. The company lifted 2017 revenue 7 per cent to US$11.8b generating a profit of US$615m. — BusinessDesk