VF Corp exploring alternatives for occupational workwear business

By

Robin Driver

Published
Jan 21, 2020

Denver-based apparel, footwear and accessories company VF Corporation announced on Tuesday that it has begun a review of strategic alternatives for the occupational portion of its work segment, as it continues with its transformation plans.

The occupational portion of VF’s workwear segment is predominantly made up of nine brands and businesses, including Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small.
 
The company’s strategic review, for which it is relying on the support of Barclays as its financial adviser and Davis Polk as its legal counsel, does not involve the Dickies or Timberland Pro brands.

The process is part of the group’s efforts to refocus on its growth-oriented active, outdoor and work brands, such as Vans, The North Face and Timberland, while also evolving into a more consumer and retail-centric company. The new strategic focus is being implemented following VF’s spin-off of its denim business as Kontoor Brands in May of last year.
 
“Driving and optimizing our portfolio continues to be a top strategic priority for VF, and exploring strategic alternatives for our occupational work brands is the natural next step in that process,” said VF chairman, president and CEO Steve Rendle in a release. “Divesting these brands would leave VF with a simplified portfolio of higher-growth, consumer-focused brands, while providing financial flexibility to fuel further strategic initiatives and enhance shareholder value.”
 
The businesses under review are distributed primarily through VF’s business-to-business channel and collectively accounted for $865 million of VF’s total revenues of $11.8 billion in fiscal 2019. They represent about half of the revenues in the company’s workwear segment.