Pursuits
VF Smarter Than Buffett as Shares Surge on Timberland: Real M&A
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The most expensive acquisition for a U.S. footwear company since 2004 is also proving to be one of the smartest deals in America this year.
VF Corp., the world’s largest apparel maker, surged 10 percent after agreeing to buy Timberland Co. for 12.3 times earnings. While the valuation for the $1.97 billion offer is 18 percent higher than the median U.S. footwear deal, VF’s jump yesterday was the biggest by any U.S. acquirer following an all-cash takeover for a publicly traded target in 2011, according to data compiled by Bloomberg. The largest cash offer, Warren Buffett’s $9 billion purchase of Lubrizol Corp., caused Berkshire Hathaway Inc. to fall 1.3 percent.