Timberland’s Benefits From Acquisition

As VF mass (NYSE: VFC), a spherical leader in branded lifestyle change state, the completed acquisition could see timberland joins a vast portfolio of brands owned by VF Corporation, including The North Face, Vans, JanSport, Reef, Lucy, Eastpak, Kipling, Smartwool, Napapijri and shoot Creek. timbre has be preserved and enhanced by meet part of the VF family of brands. It could wring profits by improving woods business performance, primarily by folding it into the apparel giants global platform, using the high prime(prenominal) & cheaper raw materials and cutting costs.

We skunk see the acquisition can bring real benefits to shareholders owing to genuine adjoins in supreme cash flows or risk reduction. These benefits are often referred to as arising from synergy which accrues to the shareholders of the target as well as to those of the bidder. VF Corporation is offered something in excess of what they perceive to be the current encourage of those shares.

In spite of the eurozone financial crisis, VFs revenues rose by 20 per cent in constant dollar foothold in Europe, firearm sales in Asia surged 43 per cent. This is the everywherecompensate time to take the Timberland to the attached level, with expected 2011 revenues of $1.



6bn, over half of which are generated internationally. For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis.

Moreover, Timberland can reach their global growth potential, take big brands and make them bigger while maintaining each brands unique rugged outdoor positioning. It will perfectly complement the premium, technical positioning of The North Face brand. Lastly, VF provides Timberland a major opportunity of sales in china for expanding.

Timberland is expected to begin adding to VFs earnings by 45 cents a share this year and 90 cents next year, excluding acquisition costs.If you want to get a full essay, company it on our website: Orderessay



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