Timberland to continue deal with Reliance

Friday, 24 June 2011

Global footwear and apparel brand Timberland which is associated with Reliance Brands in India is expected to continue its association with them inspite of the fact that VF Corporation took it over globally. Timberland with expected revenues of $ 1.6 billion in 2011 -- over half of which are generated internationally -- is synonymous with high quality outdoor footwear and apparel. The footwear giant signed a distribution agreement with Reliance Brands and opened its first outlet in August last year in India. At present Timberland products are being sold at seven outlets in India. By the end of 2011, six more outlets are planned.

US-based VF Corporation is in the process of buying Timberland in an all-cash deal for $2 billion. The company is confident in its ability to maintain Timberland’s momentum by adding Timberland’s strong brands to its powerful portfolio of outdoor and action sports brands, which include The North Face, Vans, JanSport, Reef, lucy, Eastpak, Napapijri and Eagle Creek. The transaction, expected to be completed in the third quarter, would add about $700 million to VF's overall revenues in 2011. Also the company owns over 30 brands including Wrangler, Lee, Nautica and JanSport. In India, VF Corporation has a strong presence through Arvind and Maxxis Retail Pvt Ltd.

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