EssilorLuxottica SA agreed to buy the streetwear label Supreme from VF Corp. for $1.5 billion in cash, adding another lifestyle brand to the French-Italian eyewear company's stable that already includes Ray-Ban and Oakley.
Supreme was founded in New York by James Jebbia in 1994, selling clothes and footwear targeting skateboarding and urban trends. It has moved from being a cult favorite, with its distinct red and white logo, to a mainstream success and now has an online business as well as 17 stores in the US, Asia and Europe.
EssilorLuxottica shares traded 3 per cent lower early Wednesday in Paris, trimming their year-on-year gain to 10 per cent. VF was down 0.5 per cent in premarket US trading.
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Jebbia said he supports the sale to Essilor as it will allow Supreme to focus on its brand, products and customers.
Supreme's growth has been fueled by so-called 'hype' marketing, including limited-edition collaborations with partners ranging from watchmakers to musicians, and frequent 'drops' of new products. Among others, it has tied up with Louis Vuitton and The North Face.
VF acquired Supreme in 2020 as part of a $2.1 billion deal with private equity firm Carlyle Group and investors including Goode Partners.
EssilorLuxottica was formed from the merger of two of Europe's most prominent eyewear companies "- Italy's Luxottica and France's Essilor. It is a global leader in the production and sale of prescription eyeglasses, sunglasses and contact lenses.
Separately, EssilorLuxottica also said it's buying a majority stake of 80 per cent in Heidelberg Engineering "- a German company that specializes in diagnostic solutions, digital surgical technologies and health-care IT for clinical ophthalmology.
That agreement will boost EssilorLuxottica's medical technology business, which sits alongside the fashion-focused arm selling sunglasses and accessories.
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