TBL to be Acquired by VFC for $43/Share in Cash

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Last Update: 13-Jun-11 10:04 ET

The companies jointly announced that they have signed a definitive merger agreement. VF Corp (VFC $102.48 +10.68) will pay Timberland (TBL $42.70 +12.71) shareholders $43 per share, representing a total enterprise value of approximately $2 billion net of cash acquired.

The merger agreement was unanimously approved by both companies' Boards of Directors. Timberland is a global footwear and apparel company with expected 2011 revenues of $1.6 billion, over half of which are generated internationally. The acquisition, which is expected to close in the third quarter, should add approximately $700 million to VF's 2011 revenues.

It is also expected to be accretive to VF's earnings per share, by $.25 in 2011 and by $.75 in 2012, inclusive of deal costs and other acquisition related expenses in both periods. Excluding these expenses, EPS accretion would be ~$.45 in 2011 and $.90 in 2012.

Timberland will become part of VF's Outdoor & Action Sports coalition and will remain headquartered in Stratham, New Hampshire. The merger agreement provides Timberland with a customary right, after complying with certain notice and other conditions, to terminate the merger agreement to accept a superior proposal prior to receipt of stockholder approval on July 26, 2011.