Big name fashion brands are all the rage at the moment, and not just in the glossy pages of Vogue. It seems investors cannot get enough of them.
The owner of designer jeans brand 7 For All Mankind went on a shopping spree yesterday, snapping up Timberland for £1.2billion. And Italian luxury brand Prada has received offers worth five times the £1.6billion it is looking for to float part of the group on the Hong Kong stock exchange.
US-based clothing company VF Corporation, which also owns Wrangler and North Face, has offered £26 a share for Timberland – a premium of 43 per cent from Friday’s close. The takeover has received unanimous approval from the boards of both companies, but still needs the go ahead from shareholders and regulators.
Sales of outdoor clothing, such as fleeces and hiking trousers, fuelled VF’s fastest growing division last quarter, with sales up 16pc. It reckons the addition of Timberland, famous for its rugged boots and sailing shoes, will complement this side of the business and bump up overall revenues by £420million this year. More...