CORRECTED-VF Corp to sell Dickies to Bluestar Alliance for $600 million
Sept 15 (Reuters) - Vans owner VF Corp VFC.N would sell its workwear brand Dickies for $600 million in cash to brand management company Bluestar Alliance, it said on Monday.
Shares of VF were up about 3% in premarket trading.
The deal comes as the apparel maker is undergoing a turnaround and navigating rising economic uncertainty.
Dickies, which VF bought for about $820 million in 2017, has been facing persistent sales declines for over a year.
"We continuously evaluate our portfolio and this transaction will enable us to bring our net debt level down and will be accretive to our growth on a pro-forma basis," said VF's CEO Bracken Darrell.
VF, similar to other retailers relying heavily on Southeast Asian manufacturing, has been taking steps to mitigate the impact of U.S. tariffs, including working with suppliers to cut costs.
Vietnam, Bangladesh, Cambodia and Indonesia account for most of the 85% of products sourced from Southeast Asia and the Americas, while less than 2% comes from China.
The company on Monday said it expects the Dickies transaction to close by the end of this year.
UBS is serving as the financial advisor to VF.
Bluestar Alliance owns and manages a variety of consumer brands including streetwear luxury brand Palm Angels.
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