Kontoor completes separation from VF Corporation

May 25, 2019 - United States Of America

Kontoor Brands, Inc. has announced that it has completed the previously announced separation from VF Corporation, a global lifestyle apparel leader and is now a global, independent, publicly traded company, headquartered in Greensboro, United States. Kontoor Brands shares will begin trading on the New York Stock Exchange under the ticker symbol KTB.

“This is a historic day for everyone connected with Kontoor as we now accelerate to the next stage of our journey as a public company,” said Scott Baxter, president & CEO of Kontoor Brands. “Since the separation from VF was first announced last August, we have planned for this moment and we are fully prepared to succeed. We are grateful to the VF and Kontoor teams that worked collaboratively to stand-up this terrific organization. We have a historic opportunity ahead of us. We are confident that Kontoor and its brands are positioned for value-creating performance.”

The separation was achieved through the distribution of 100 per cent of the shares of Kontoor Brands to holders of VF common stock. VF shareholders entitled to receive the distribution received a book-entry account statement or a credit to their brokerage account reflecting their ownership of Kontoor Brands common stock.

The distribution of Kontoor Brands’ shares was completed after the market close on May 22, 2019, with VF shareholders receiving one share of Kontoor Brands common stock for every seven shares of VF common stock held at the close of business on the record date of May 10, 2019. Fractional shares of Kontoor Brands common stock were not distributed. Any fractional share of Kontoor Brands common stock otherwise issuable to a VF shareholder will be sold in the open market on such shareholder’s behalf, and such shareholder will receive a cash payment for the fractional share based on its pro rata portion of the net cash proceeds from all sales of fractional shares.

“Our board of directors and executive leadership team feature a unique range of management experience, both from within VF and from other leading multi-national companies and global brands. Our team’s depth and breadth of experience and extensive sector knowledge will help to drive the success of our company,” Baxter said. “I look forward to working with this talented group to establish Kontoor as a respected, thriving, independent, publicly traded company.”

Kontoor is determined to deliver consistent and reliable shareholder returns through solid execution and an efficient long-term Total Shareholder Return (TSR) operating model, underpinned by strong margins and cash flow generation. The long-term TSR model assumes an approximate 5 per cent dividend yield, 2 to 3 per cent margin expansion and 1 to 2 per cent revenue growth, equating to 8 to 10 per cent annualised returns. This TSR algorithm does not incorporate share repurchases, M&A or multiple expansion. (RR)