VF Corp to sell Dickies to Bluestar Alliance for $600m

VF Corporation announced on Monday that it has reached a deal with global brand management firm Bluestar Alliance LLC to sell the Dickies brand, with Bluestar acquiring it for a hefty $600 million in cash.

Dickies, a brand that’s just over a century old, is a big name as far as heritage American labels are concerned and it’s available in 55 countries. But the sale price is significantly below what VF Corp paid ($820 million) when it acquired it back in 2017.

The deal should complete by the end of the year and will see Dickies joining a company that manages a portfolio of over 500 licensees and a growing branded retail platform of over 500 stores globally.

So what is it that appeals to Bluestar? Its CEO Joseph Gabbay said on Monday that “balancing utility and style, Dickies continues to resonate across generations, geographies, and subcultures. Since 1922, [it] has provided hard-wearing, long-lasting and comfortable clothes, cementing its status as a storied brand in performance workwear. We have followed the brand for many years and have a deep appreciation for its history and legacy, which VF Corporation has successfully begun to rebuild over the past few years. We are committed to supporting the brand’s growth by leveraging our consumer insights and operational excellence to unlock its full value for all stakeholders.”

And VF’s president and CEO, Bracken Darrell, also said that “under Bluestar Alliance’s ownership, [Dickies] will continue to improve and realize its significant growth potential”.

For VF, the sale is a chance to address its debt load. Darrell added that “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”.

VF continues to own other major brands including The North Face, Vans and Timberland.