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Eyewear giant EssilorLuxottica has reached an agreement with VF corporation to acquire streetwear brand Supreme for $1.5 billion, the companies said in a statement on Wednesday.
The cash deal, slated to close by the end of the year, marks the eyewear company’s first apparel-centric addition to its portfolio. The Italian-French company has primarily focused on making eyewear for popular brands such as Ray-Bans 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 prepared joint statement.
The executives added that the deal “perfectly aligns” with EssilorLuxottica’s “innovation and development journey,” and that it offers a “direct connection to new audiences.”
Meanwhile, Bracken Darrell, chief executive officer of VF Corp., said Supreme has expanded its presence in key markets such as China and South Korea, delivering strong growth.
But even so, Darrell said, given the streetwear brand’s distinct business model and VF’s integrated model, there was ultimately “limited synergies between Supreme and VF, making a sale a natural next step.”
Supreme first opened its doors in downtown Manhattan in 1994, where it quickly grew into a fixture of skateboarding and urban fashion culture, eventually employing skaters and local artists.
The 30-year-old company, which primarily operates a digital business, has 17 stores in the U.S., Asia and European regions.
The sale of Supreme is expected to be dilutive to VF Corp.’s earnings per share in fiscal 2025.