Wall Street Strategies Comments on VF Corp.'s Acquisition of Timberland

Wall Street Strategies is out with its report today on VF Corp VFC, commenting on VF's acquisition of Timberland. In a note to clients, Wall Street Strategies writes, "We arrive to the office on Monday morning to learn that Timberland TBL will be acquired by VF Corp. for $2 billion, or $43.00 p/s, implying a 43% premium to the Friday closing price (takeover price is still slightly below 52-week high). The total enterprise value of $2 billion represents a 9.3x EV/EBITDA multiple against expected FY12 Timberland EBITDA (attractive for a brand of this notoriety and balance sheet condition). To be clear, this is a fantastic deal strategically and valuation wise for VF Corp. (and follows a swift decline in Timberland shares as it missed badly on 1Q11 earnings)." At the time of posting: Shares of VFC were trading at $103.00, up 12.20% from Friday's close; Shares of TBL were trading at $42.73, up 42.48% from Friday's close.