NEW YORK, July 7 (UPI) -- VF Corp. has signed a definitive agreement to buy Nautica Enterprises for $585.6 million in hopes of sprucing up its conservative branding image.
Nautica owns upscale designer denim brand Earl Jean and John Varvatos, a collection of designer menswear and sportswear. The sale would likely please shareholders who have been unhappy with the company's recent share price.
Starting in the mid-1990s, Nautica rode the wave of fashion brands going public and became a menswear anchor brand in department stores along with all-American labels Polo Ralph Lauren Corp. and Tommy Hilfiger Corp. But Nautica lost momentum when it branched out into women's apparel, where its efforts failed to catch on, the Wall Street Journal reported.
VF said it would pay $17 a share. Shares of Nautica were trading under $11 in early June. Nautica was up nearly 27 percent in early afternoon trading Monday at $16.74.
