Footwear and outdoor clothing brand Timberland has been sold to US-based clothing company VF Corporation, owner of brands including denim businesses Wrangler and 7 For All Mankind, for $2bn (£1.2bn).
It is reported that the deal has received the unanimous approval from the boards of both companies, although it still needs the green light from shareholders and regulators. The deal is expected to be completed by the end of September.
VF, which already owns outdoor brand North Face, will pay $43 (£26) per share for Timberland and the deal should increase its revenue for 2011 by $700m (£429m). It forecasted annual sales growth of 10% for Timberland.
Eric Wiseman, chairman and chief executive at VF, said: “We believe the unique rugged outdoor positioning of the Timberland brand will perfectly complement the premium, technical positioning of the North Face brand.”