Eyewear giant EssilorLuxottica has entered into an agreement with VF Corporation to acquire the streetwear brand Supreme for $1.5 billion, both companies announced on Wednesday.
The cash deal, expected to close by the end of the year, marks EssilorLuxottica’s first significant venture into the apparel segment. The Italian-French company is primarily known for producing eyewear for popular brands such as Ray-Ban and Oakley.
“We see an incredible opportunity in bringing an iconic brand like Supreme into our company,” said CEO Francesco Milleri and Deputy Chief Paul du Saillant in a joint statement.
The executives noted that the acquisition “perfectly aligns” with EssilorLuxottica’s “innovation and development journey” and provides a “direct connection to new audiences.”
Bracken Darrell, CEO of VF Corp., highlighted Supreme’s significant growth in key markets such as China and South Korea. Despite this success, Darrell mentioned that due to the distinct business model of Supreme and VF’s integrated model, there were “limited synergies between Supreme and VF, making a sale a natural next step.”
Founded in downtown Manhattan in 1994, Supreme quickly became a staple in skateboarding and urban fashion, employing skaters and local artists. The 30-year-old company, which operates mainly through digital channels, has 17 stores in the U.S., Asia, and Europe.
The sale of Supreme is anticipated to be dilutive to VF Corp.’s earnings per share in fiscal 2025.