US clothing firm agrees to spend $2bn on bootmaker Timberland
US CLOTHING firm VF Corp has agreed to buy Timberland, the bootmaker, for $2bn (£1.2bn).
VF Corp, which owns the North Face clothing brand and chain, is making the acquisition to boost sales of its outdoor gear.
The deal values Timberland at $43 a share, a 43 per cent premium to its closing price of $29.99 on Friday on the New York Stock Exchange.
The Timberland deal will complement the firm by vastly beefing up VF’s offerings of items such as hiking boots and sandals. Footwear accounts for 75 per cent of Timberland sales.
VF expects the deal, approved unanimously by the boards of both companies, to give earnings an immediate lift. It forecast an extra 25 cents in earnings per share in 2011 and 75 cents in 2012, including deal-related expenses.