VF Sells Intimate Apparel, Buys Additional North Face Business

4/4/2007

VF Corporation completes the sale of its global intimate apparel business to Fruit of the Loom Inc., a subsidiary of Berkshire Hathaway Inc. Proceeds of the sale will consist of the previously disclosed $350 million purchase price, plus adjustment for working capital changes. As previously indicated, VF plans to use the proceeds from the sale to repurchase shares in 2007. Also announced this week, VF acquires The North Face branded business in China from its licensee, Korea-based Youngone Corporation. VF now assumes responsibility for continuing the brand's rapid growth in China, with the potential for $40 million in revenues within five years. In addition to its wholesale business, The North Face brand also has one freestanding retail store in Beijing.

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