Investopedia: VF Corp Laces Up Timberland

I've been thinking (and writing) for a little while now that several footwear stocks just look too cheap relative to even modest growth expectations. Apparently VF Corp (NYSE:VFC), one of the largest apparel makers in the world, agrees. Before the open of trading, VF Corp announced that it was acquiring outdoor footwear maker Timberland (NYSE:TBL) in a cash deal worth roughly $2 billion. 

For VF Corp, this is an interesting expansion into new territory. For Timberland shareholders, it is a bittersweet end for a company that has not only been run well, but has frequently been lauded by the ethical investing crowd for its policies and philosophies. There's even something here for investors with no direct stake in either company - perhaps it is at least partial validation that footwear companies have traded too low in this latest market pullback.


The Deal to Come
Assuming that all of the necessary "i's" are dotted and "t's" crossed, VF Corp will acquire Timberland for $43 per share in cash. That represents a premium of 43% to Friday's closing price, a little less than $3 from the all-time high for the stock (set just back in late April, prior to a major fall due to an earning miss), and pretty much the full value for the shares.


To read the full piece, please follow the link:
http://stocks.investopedia.com/stock-analysis/2011/VF-Corp-Laces-Up-Timberland-VFC-TBL-PSS-BWS-SKX-KSWS-WMT0613.aspx