The U.S based manufacturer of footwear and outdoor brands which includes Timberland, VF Corp, has signed a definitive agreement to sell its Contemporary Brands businesses, which include 7 for All Mankind, Splendid and Ella Moss, to Delta Galil Industries, the global manufacturer and marketer of private label clothing.

“We are pleased to have reached this agreement. The brands included in this transaction are leaders in their sectors, and have talented, passionate people who are motivated by serving the marketplace with distinctive apparel design and exceptional service”, said Eric Wiseman, Chairman and CEO, VF.

“Earlier this year we said that we are taking a focused and proactive look at the composition of our business portfolio to ensure that we are well positioned to maximise VF’s growth and return to our shareholders. This announcement illustrates that our work as active portfolio managers is progressing”, he added.

The transaction is expected to be concluded in the third quarter of 2016 and is subject to various regulatory approvals as well as other customary closing conditions that must be accomplished in order for a closing to occur. The selling price announced by VF is US$120 million, subject to various working capital adjustments.