Shares of VF Corporation (NYSE:VFC) edged higher Monday after the company said it has signed a definitive agreement to divest its Dickies brand to Bluestar Alliance in an all-cash deal worth $600 million.
The transaction, expected to close before the end of 2025, will allow VF to bring down its debt load and should boost growth on a pro-forma basis, according to President and CEO Bracken Darrell.
“Dickies is an iconic American workwear brand with a bright future, and I am confident that under Bluestar Alliance’s ownership, it will continue to improve and realize its significant growth potential,” Darrell said.
Founded in 1922, Dickies has become a household name in durable workwear, blending practicality with style. The brand is distributed in 55 countries and has carved out a unique position straddling workwear and streetwear, resonating with multiple generations and subcultures worldwide.
Bluestar Alliance, a global brand management firm with a portfolio spanning fashion and lifestyle, has had its eye on Dickies for years. Joseph Gabbay, CEO of Bluestar Alliance, underscored his company’s commitment to scaling the label, saying the firm will be “leveraging our consumer insights and operational excellence to unlock its full value for all stakeholders.”
The agreement remains subject to regulatory clearance and other customary conditions. VF Corporation has tapped UBS as its financial advisor, while Davis Polk & Wardwell LLP is handling legal counsel.
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