EssilorLuxottica to Buy VF’s Supreme Brand for $1.5 Billion (3)

EssilorLuxottica SA agreed to buy the streetwear label Supreme from VF Corp. for $1.5 billion in cash, adding another lifestyle brand to the French-Italian eyewear company’s stable that already includes Ray-Ban and Oakley.

Streetwear is a surprising choice for EssilorLuxottica, which was formed from the merger of two of Europe’s most prominent eyewear companies — Italy’s Luxottica and France’s Essilor. For VF, selling Supreme will allow the company to simplify its business and raise cash to pay down debt.

“As a near-luxury brand, Supreme never fit with the rest of VF’s brands that well,” said David Swartz, a senior ...