Creating Two Global Leaders
Tags: Corporate News Brand News Strategy & Innovation
Creating Two Global Leaders
August 13, 2018
The following post was shared by Steve Rendle on LinkedIn earlier today.
Today marks another significant milestone in VF Corporation’s storied 119-year history, as we announced our intention to separate into two independent, publicly traded companies. The two companies will be VF Corporation and a new company to be named later (referred to now as NewCo), which will comprise our Jeans business, including the Wrangler® and Lee® brands.
The proposed separation will enable VF to sharpen its focus as an $11 billion global apparel and footwear powerhouse, anchored in activity-based lifestyle and workwear brands. NewCo, which will be named and branded in the coming months, will be a $2.5 billion global leader in the denim category, highlighted by iconic brands that are steeped in rich heritage and authenticity.
When VF introduced our 2021 Global Business Strategy last March, reshaping our brand portfolio to accelerate growth was noted as our highest priority. Throughout the past 18 months, we have taken several significant steps to deliver on this objective and position the company to drive long-term value creation. The proposed separation into two companies is an important next step in our transformational journey to build a Purpose-led, performance-driven, value-creating enterprise.
Both VF and NewCo will have strong foundations as global leaders in our industry. As independent companies, each will be able to build on its individual strengths and leverage the talent, resources and flexibility needed to thrive in today’s dynamic consumer marketplace.
In addition to the separation of our Jeans business from VF, we also announced our plan to move VF’s global headquarters from Greensboro, North Carolina to metro Denver. Our new headquarters will also become home to several of our brands, including The North Face®, JanSport®, Smartwool®, Altra® and Eagle Creek®, as well as our Global Innovation Center for technical fabrics and Digital Lab.
Relocating these brands along with select VF leaders at a shared headquarters at the base of the Rocky Mountains will better enable us to collaborate across brands and functions, unlock innovation and business opportunities, attract and retain talent, and connect with our consumers. It will also simplify VF’s North American physical office footprint and create a dynamic environment that will amplify our One VF culture, while reinforcing the individual cultures of our outdoor and active brands.
VF is proud of our Greensboro roots and we will maintain a strong, ongoing employment presence there with hundreds of associates who will continue to support VF and our brands worldwide.
The pace of change in our global marketplace is accelerating at an unprecedented rate and consumers are evolving. Now is the time to establish two great companies with powerful brand portfolios and strong management teams to build on our past and shape even more successful futures.
I look forward to providing more updates as we continue this exciting journey.