The deal values Timberland at $43 a share, a 43 per cent premium to Friday’s closing price of $29.99 on the New York Stock Exchange.
The companies expect the deal, which was unanimously approved by both boards, to add to VF’s earnings per share by 25 cents in 2011 and by 75 cents in 2012, including acquisition-related expenses.
Timberland, home to its namesake label and brands such as Mountain Athletics and SmartWool, expects 2011 revenue of $1.6 billion, more than half of which is generated internationally. The parties expect the deal to close in the third quarter and add about $700 million to VF’s 2011 revenue. VF plans to finance the deal through a combination of cash on hand, commercial paper and term debt.
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