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Monday, June 13, 2011

VF buying Timberland, eyes outdoor gear sales, (NYSE: VFC), (NYSE: TBL)

VF Corp (VFC.N), owner of the North Face clothing brand and chain, is buying footwear maker Timberland Co (TBL.N) for $2 billion to boost sales of outdoor gear, its biggest business. The deal will help VF "build the premier portfolio of outdoor brands," Chief Executive Eric Wiseman told investors on Monday on a conference call, noting that Timberland was at the top of a shortlist of targets VF drew up a year ago. The deal values Timberland at $43 a share, a 43 percent premium to its closing price of $29.99 on Friday on the New York Stock Exchange. Outdoor clothing, such as fleece vests and hiking pants, was VF's fastest growing segment last quarter, with sales up 16 percent. The Timberland deal will complement that by vastly beefing up VF's offerings of items such as hiking boots and sandals. Footwear accounts for 75 percent of Timberland sales.

V.F. Corporation (VF) is a global apparel company based in the United States. Shares of VFC traded higher by 10.98% or $10.0765/share to $101.88. In the past year, the shares have traded as low as $69.24 and as high as $108.87. On average, 949228 shares of VFC exchange hands on a given day and today's volume is recorded at 2592421.

The Timberland Company (Timberland) designs, develops and markets footwear, apparel and accessories products for men, women and children. Shares of TBL traded higher by 42.46% or $12.735/share to $42.72. In the past year, the shares have traded as low as $15.07 and as high as $45.72. On average, 734070 shares of TBL exchange hands on a given day and today's volume is recorded at 16270173.



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