Investing.com -- VF Corporation (NYSE:VFC) stock rises after the apparel company announced it has entered into a definitive agreement to sell its Dickies brand to Bluestar Alliance for $600 million in cash.
The transaction, which is expected to close by the end of calendar year 2025, will help VF Corporation reduce its debt levels and is expected to be accretive to the company's growth on a pro-forma basis, according to VF's President and CEO Bracken Darrell.
"Dickies is an iconic American workwear brand with a bright future, and I am confident that under Bluestar Alliance's ownership, it will continue to improve and realize its significant growth potential," Darrell said in a statement.
The Dickies brand, established in 1922, has built a reputation for durable workwear that blends utility and style, with distribution across 55 countries. The brand sits at the intersection of workwear and streetwear, appealing to various generations and subcultures globally.
Bluestar Alliance, a global brand management firm, has been monitoring the Dickies brand for years. Joseph Gabbay, CEO of Bluestar Alliance, expressed commitment to supporting the brand's growth by "leveraging our consumer insights and operational excellence to unlock its full value for all stakeholders."
The deal remains subject to customary closing conditions and regulatory approvals. UBS is serving as financial advisor to VF Corporation, with Davis Polk & Wardwell LLP providing legal counsel.
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