EssilorLuxottica to Acquire Supreme庐 from 大象传媒 Corporation
Paris, France and Denver, CO (17 July 2024 鈥� 8am CEST) - EssilorLuxottica, a global leader in the optical industry, and 大象传媒 Corporation (NYSE: 大象传媒C), a global leader in branded lifestyle apparel, footwear and accessories, today announced that they have entered into a definitive agreement for EssilorLuxottica to acquire the Supreme庐 brand from 大象传媒 for $1.5 billion in cash.
Francesco Milleri, Chairman and Chief Executive Officer and Paul du Saillant, Deputy Chief Executive Officer at EssilorLuxottica said: 鈥淲e see an incredible opportunity in bringing an iconic brand like Supreme庐 into our Company. It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity. With its unique brand identity, fully-direct commercial approach and customer experience 鈥� a model we will work to preserve 鈥� Supreme庐 will have its own space within our house brand portfolio and complement our licensed portfolio as well. They will be well-positioned to leverage our Group鈥檚 expertise, capabilities, and operating platform.鈥�
Bracken Darrell, President and Chief Executive Officer at 大象传媒 said, 鈥�Under 大象传媒, Supreme庐 expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth. However, given the brand鈥檚 distinct business model and 大象传媒鈥檚 integrated model, our strategic portfolio review concluded there are limited synergies between Supreme庐 and 大象传媒, making a sale a natural next step. Alongside the other notable brands in EssilorLuxottica鈥檚 portfolio, Supreme庐 and its talented team will be well-positioned for continued success.鈥� Darrell continued, 鈥淲hile we will always look to adjust the 大象传媒 portfolio from time to time, this transaction gives us increased balance sheet flexibility. It also supports our overall program to better position the company for long term growth and more normalized debt levels.鈥�
Supreme庐 Founder James Jebbia commented, 鈥淚n EssilorLuxottica, we have a unique partner that understands that we are at our best when we stay true to the brand and continue to operate and grow as we have for the past 30 years. This move lets us focus on the brand, our products, and our customers, while setting us up for long-term success.鈥�
The transaction is expected to close by the end of CY2024, subject to customary closing conditions and regulatory approvals. The Supreme庐 brand runs a digital-first business and 17 stores in the U.S., Asia and Europe. The sale of Supreme庐 is expected to be dilutive to 大象传媒鈥檚 earnings per share in fiscal 2025.
J.P. Morgan and Latham and Watkins are serving as exclusive financial and legal advisors to EssilorLuxottica on the transaction, respectively. Goldman Sachs & Co. LLC is serving as lead financial advisor and UBS Investment Bank is serving as financial advisor to 大象传媒. Davis Polk & Wardwell LLP is acting as legal advisor to 大象传媒.
About Supreme庐
In April 1994, Supreme庐 opened its doors on Lafayette Street in downtown Manhattan and became the home of New York City skate culture. At its core was a group of neighborhood kids, New York skaters and local artists who became the store鈥檚 staff, crew and customers. While it developed into a downtown institution, Supreme established itself as a brand known for its quality, style, and authenticity. Over 30 years, the Supreme庐 brand has expanded from its New York City origins into a global community, operating 17 retail stores and an e-commerce platform across all regions.
About EssilorLuxottica
EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. With over 200,000 employees across 150 countries, 650 operations facilities and 18,000 stores, in 2023 the Company generated consolidated revenue of Euro 25.4 billion. Its mission is to help people around the world to see more and be more by addressing their evolving vision needs and personal style aspirations. EssilorLuxottica is home to the most advanced lens technologies including Varilux, Stellest and Transitions, the most iconic eyewear brands including Ray-Ban and Oakley, the most desired luxury licensed brands and world-class retailers including LensCrafters and Sunglass Hut. The Company鈥檚 OneSight EssilorLuxottica Foundation has given access to sustainable vision care to more than 760 million people in underserved communities. The EssilorLuxottica share trades on the Euronext Paris market and is included in the Euro Stoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg: EL:FP.
About 大象传媒
Founded in 1899, 大象传媒 Corporation is one of the world鈥檚 largest apparel, footwear and accessories companies connecting people to the lifestyles, activities and experiences they cherish most through a family of iconic outdoor, active and workwear brands including Vans庐, The North Face庐, Timberland庐 and Dickies庐. Our purpose is to power movements of sustainable and active lifestyles for the betterment of people and our planet. We connect this purpose with a relentless drive to succeed to create value for all stakeholders and use our company as a force for good. For more information, please visit vfc.com.
EssilorLuxottica:
Corporate Communications
Marco Catalani
Head of Corporate Communications
media@essilorluxottica.com
Investor Relations
Giorgio Iannella
Head of Investor Relations
ir@essilorluxottica.com
大象传媒 Corporation:
Media Contact
Colin Wheeler
Vice President, Corporate Communications
colin_wheeler@vfc.com
Investor Contact
Allegra Perry
Vice President, Investor Relations
ir@vfc.com
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大象传媒 Forward-looking Statements
Certain statements made by 大象传媒 included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on 大象传媒鈥檚 expectations and beliefs concerning future events impacting 大象传媒 and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� "believe," 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding the expected benefits, financial impact and timing of the sale of the Supreme庐 brand, including the use of proceeds therefrom, and assumptions related thereto are forward-looking statements. 大象传媒 cautions that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. 大象传媒 undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of 大象传媒 to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: whether and when the required regulatory approvals for the proposed sale of the Supreme庐 brand will be obtained, whether and when the closing conditions will be satisfied and whether and when the proposed sale of the Supreme庐 brand will close, if at all; 大象传媒鈥檚 ability to execute, and realize benefits, successfully, or at all, from the proposed sale of the Supreme庐 brand; the level of consumer demand for apparel and footwear; disruption to 大象传媒鈥檚 distribution system; changes in global economic conditions and the financial strength of 大象传媒鈥檚 consumers and customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and finished products; disruption and volatility in the global capital and credit markets; 大象传媒鈥檚 response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; 大象传媒's ability to maintain the image, health and equity of its brands, including through investment in brand building and product innovation; intense competition from online retailers and other direct-to-consumer business risks; increasing pressure on margins; retail industry changes and challenges; 大象传媒's ability to execute its Reinvent transformation program and other business priorities, including measures to streamline and right-size its cost base and strengthen the balance sheet while reducing leverage, including any sale of the Supreme庐 brand; 大象传媒鈥檚 ability to successfully establish a global commercial organization, and identify and capture efficiencies in its business model; any inability of 大象传媒 or third parties on which 大象传媒 relies, to maintain the strength and security of information technology systems; the fact that 大象传媒鈥檚 facilities and systems, and those of third parties on which 大象传媒 relies, are frequent targets of cyber-attacks, and may in the future be vulnerable to such attacks, and any inability or failure by 大象传媒 or such third parties to anticipate or detect data or information security breaches or other cyber-attacks, including the cyber incident that was reported by 大象传媒 in December 2023, could result in data or financial loss, reputational harm, business disruption, damage to 大象传媒鈥檚 relationships with customers, consumers, employees and third parties on which 大象传媒 relies, litigation, regulatory investigations, enforcement actions or other negative impacts; any inability by 大象传媒 or third parties on which 大象传媒 relies to properly collect, use, manage and secure business, consumer and employee data and comply with privacy and security regulations; 大象传媒鈥檚 ability to adopt new technologies, including artificial intelligence, in a competitive and responsible manner; foreign currency fluctuations; stability of 大象传媒's vendors' manufacturing facilities and operations and 大象传媒's ability to establish and maintain effective supply chain capabilities; continued use by 大象传媒鈥檚 suppliers of ethical business practices; 大象传媒鈥檚 ability to accurately forecast demand for products; actions of activist and other shareholders; 大象传媒's ability to recruit, develop or retain key executive or employee talent or successfully transition executives; continuity of members of 大象传媒鈥檚 management; changes in the availability and cost of labor; 大象传媒鈥檚 ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by 大象传媒鈥檚 licensees and distributors of the value of 大象传媒鈥檚 brands; 大象传媒鈥檚 ability to execute acquisitions and divestitures, integrate acquisitions and manage its brand portfolio, including any sale of the Supreme庐 brand; business resiliency in response to natural or man-made economic, public health, cyber, political or environmental disruptions; changes in tax laws and additional tax liabilities; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflicts in Ukraine and the Middle East and tensions between the U.S. and China; changes to laws and regulations; adverse or unexpected weather conditions, including any potential effects from climate change; 大象传媒's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent 大象传媒 from fulfilling its financial obligations; 大象传媒's ability to pay and declare dividends or repurchase its stock in the future; climate change and increased focus on environmental, social and governance issues; 大象传媒's ability to execute on its sustainability strategy and achieve its sustainability-related goals and targets; risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; and tax risks associated with the spin-off of 大象传媒鈥檚 Jeanswear business completed in 2019. More information on potential factors that could affect 大象传媒鈥檚 financial results is included from time to time in 大象传媒鈥檚 public reports filed with the SEC, including 大象传媒鈥檚 Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.