Jefferies Comments On VF Timberland Acquisition

According to Jefferies, VF Corporation's

Timberland acquisition effectively makes VF a significantly larger company with a similar sales growth rate to its existing portfolio. Jefferies said that this deal is VF Corp's largest ever and the most transformational to its portfolio since the acquisition of Blue Bell (Wrangler) in 1986, which effectively doubled the company. “At $1.6 billion in sales estimated for 2011, Timberland becomes one of VF's largest brands (comparable in size to The North Face). It will contribute 16% to overall sales and 13% to EBIT. The deal, however, reduces the contribution from what we believe to be higher quality assets in The North Face and Vans, whose sales mix declines from 31% to 27%.” VF Corporation closed yesterday at $101.01.