Carlyle to flip streetwear icon Supreme in $2.1B deal
November 10, 2020
A billion-dollar bet on a red-hot apparel brand is about to pay off for The Carlyle Group.
Apparel conglomerate VF has agreed to acquire the Supreme streetwear brand from Carlyle and fellow backer Goode Partners, reportedly valuing the business at $2.1 billion. The deal will result in a healthy exit multiple after a relatively brief period of ownership, coming about three years after Carlyle acquired a 50% stake in Supreme at a reported $1 billion valuation.
Founded in 1994 in New York, Supreme was originally a skateboarding brand that has since morphed into a broader cultural force, selling limited-edition clothes, shoes and other products that often spark bidding wars on the secondary market. At VF, the company will join a portfolio of other apparel brands including Vans, The North Face and Timberland.
Another cult-favorite fashion brand, meanwhile, is set to change hands in Europe. Eurazeo has agreed to pay €56 million (about $66 million) for a controlling stake in Swedish sneaker and fashion label Axel Arigato, with plans to expand its ecommerce offerings and its current chain of six physical stores. The deal is Eurazeo's first European investment from its New York-headquartered consumer brands division, which launched in 2017 with $800 million in investable capital.
Apparel conglomerate VF has agreed to acquire the Supreme streetwear brand from Carlyle and fellow backer Goode Partners, reportedly valuing the business at $2.1 billion. The deal will result in a healthy exit multiple after a relatively brief period of ownership, coming about three years after Carlyle acquired a 50% stake in Supreme at a reported $1 billion valuation.
Founded in 1994 in New York, Supreme was originally a skateboarding brand that has since morphed into a broader cultural force, selling limited-edition clothes, shoes and other products that often spark bidding wars on the secondary market. At VF, the company will join a portfolio of other apparel brands including Vans, The North Face and Timberland.
Another cult-favorite fashion brand, meanwhile, is set to change hands in Europe. Eurazeo has agreed to pay €56 million (about $66 million) for a controlling stake in Swedish sneaker and fashion label Axel Arigato, with plans to expand its ecommerce offerings and its current chain of six physical stores. The deal is Eurazeo's first European investment from its New York-headquartered consumer brands division, which launched in 2017 with $800 million in investable capital.