Italian-French eyewear giant EssilorLuxottica announced on Wednesday that it will purchase U.S. urban fashion brand Supreme for $1.5 billion in cash from VF Corp. The move comes as EssilorLuxottica aims to tap into the lucrative streetwear market and expand its customer base.

Definitive Agreement and Legal Advisers

EssilorLuxottica SA confirmed it has entered into a definitive agreement with VF Corp., a U.S. apparel and footwear company, to acquire the Supreme brand. The acquisition of EssilorLuxottica's $1.5B Streetwear Brand Buy will allow the eyewear giant to cater to the growing demand for streetwear fashion.

Latham & Watkins LLP is serving as legal adviser to EssilorLuxottica, which owns renowned eyewear brands including Ray-Ban and Oakley. The legal team was led by partners Jason Morelli, Bradley Faris, and Antonio Coletti, along with associate Grace Kim.

On the other side, Davis Polk & Wardwell LLP is advising VF Corp., with a team comprising partners Marc O. Williams and Daniel Brass, and associate Christine Choi.

EssilorLuxottica $1.5B Streetwear Brand Buy : Supreme's Rise to Fame

Founded as a skateboarding lifestyle label in New York in 1994, Supreme's urban styling quickly gained popularity among fashion enthusiasts and celebrities. The brand's prominence soared in 2017 following a high-profile collaboration with luxury fashion house Louis Vuitton.

Strategic Move for EssilorLuxottica

EssilorLuxottica stated that the acquisition of EssilorLuxottica's $1.5B Streetwear Brand Buy will enable the company to connect with new audiences and broaden its market reach.

Bracken Darrell, president and chief executive of VF, explained that a strategic review concluded there were limited synergies between Supreme and VF, making the sale a logical step.

Focus on Long-Term Success

Supreme's founder, James Jebbia, expressed optimism about the deal, noting it will allow the brand to concentrate on its products and customers while positioning itself for long-term success.

EssilorLuxottica $1.5B Streetwear Brand Buy : Regulatory Approval and Financial Advisers

The companies noted that the transaction requires regulatory approval but did not specify the authorities involved. They anticipate the deal will close by December.

J.P. Morgan Securities PLC is acting as financial adviser to EssilorLuxottica, while Goldman Sachs & Co. LLC and UBS Investment Bank are advising VF Corp. on financial matters.