VF Corp. has jumped into the performance running shoe business with the acquisition of Altra from ICON Health & Fitness. Terms of the agreement were not disclosed.
Altra launched in 2011 and is now sold in 55 countries through more than 1,600 specialty retail locations and a branded e-commerce platform (www.altrarunning.com). Its specialized, innovative design technology for road, trail, and lifestyle footwear has created a high-growth, award-winning brand with a strong and dedicated enthusiast following.
“The acquisition of the Altra brand is another example of our efforts to reshape and evolve our portfolio of powerful brands to align with our enterprise value creation model,” states Steve Rendle, CEO of VF Corp. “The active outdoor and performance sector is a large and attractive growth space. The addition of the Altra brand brings to VF a unique and differentiated technical footwear brand and a capability that when applied across VF’s outdoor footwear, direct-to-consumer and international platforms will serve as a catalyst for growth.”
On a trailing 12-month basis, Altra generated approximately $50 million of revenue. The transaction is expected to be completed next month and the addition of the Altra brand to VF’s portfolio is expected to be immediately accretive to earnings per share.
“The Altra brand’s truly innovative product and devoted brand loyalists will serve it well in its new home at VF,” says Scott Watterson, ICON’s Chairman and CEO. “The sale of Altra will accelerate the continuing growth of our NordicTrack and ProForm core brands, our Freemotion commercial business, and iFit, our connected fitness subscription. The global health and wellness industry is exploding, and we’re doubling down on that growth.”
