Ever eager to court youthful consumers, VF Corporation (NYSE:VFC) is buying edgy skatewear and apparel brand Supreme. The company announced Monday that it reached an agreement to purchase the stakes in the business held by The Carlyle Group and privately held Goode Partners in a deal valued at $2.1 billion.

Acquisitions are par for the course for VF. Over the years, the company has built itself into an important apparel and footwear conglomerate by acquiring such familiar brands as footwear makers Timberland and Vans, premium outdoor gear manufacturer The North Face, and Wrangler jeans.

Young man performing moves on a skateboard.

Image source: Getty Images.

VF and Supreme are hardly strangers. The two have collaborated to offer co-branded products based on Vans sneakers, The North Face jackets, and other items.

"The acquisition of the Supreme brand is further validation of our vision and strategy to further evolve our portfolio of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector," VF CEO Steve Rendle said.

Supreme's owner-to-be said the brand's founder and CEO, James Jebbia, is to stay with the company. Its headquarters will remain in New York City.

VF said it is funding the acquisition with a mix of cash and commercial paper, adding that it expects the deal to close by the end of this year. The company said that Supreme would be "modestly accretive" to its fiscal 2021 results, and contribute a minimum of $500 million in revenue and $0.20 in non-GAAP (adjusted) per share earnings the following fiscal year.

VF's investors are clearly excited about this deal. They bid the stock up by 11% on Monday, trouncing the gains of the S&P 500 index.

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