VF takes stake in sportswear brands |
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| Tuesday, 17 June 2008 | |
 VF Corporation has acquired one-third of the capital stock of Mo Industries in the Splendid and Ella Moss premium women's sportswear brands with a view to acquiring the remainder of the capital stock in 2009. The terms of the deal were not disclosed. The acquisition of 33% of Mo
Industries, owner  of the labels, is consistent with VF's long-term strategy of acquiring strong brands with global reach and strong growth potential. The deal is a good fit for the apparel maker and should also provide synergies with its existing premium brands, 7 For All Mankind and Lucy. Sales at the Splendid and Ella Moss labels have tripled since 2004 to more than US$80 million.
"We've stated our intent to grow in the women's contemporary sportswear area, and both the Splendid and Ella Moss brands have demonstrated impressive growth and the ability to attract a loyal consumer following through superior products," said Mike Egeck, president of VF's Contemporary Brands coalition, which includes the 7 For All Mankind and Lucy brands. "Working with Moise and his team will allow us to broaden our expertise in the important knit tops category and will provide synergies with both our 7 For All Mankind and Lucy brands. " Mo Industries, headquartered in Los Angeles, is owned by founder Moise Emquies, who serves as chief executive officer and president, and Summit Partners, a private equity and venture capital firm. The Splendid and Ella Moss brands offer premium apparel focused on contemporary knit tops and sold through premium department and speciality stores. The tie-up with VF will enable Mo Industries to continue the development of the brands with the addition of more collections expected. International distribution and deeper penetration with its existing US retail network is also expected. VF Corporation is a global leader in lifestyle apparel with a diverse portfolio of jeanswear, outdoor, imagewear, sportswear and contemporary apparel brands. Its principal brands include Wrangler, Lee, Riders, The North Face, Vans, Reef, Eagle Creek, Eastpak, JanSport, Napapijri, Nautica, Kipling, John Varvatos, 7 For All Mankind, lucy, Majestic and Red Kap. Image: Ella Moss |
