VF plans to make Timberland part of its outdoor and actions sports business

The wheels were turning Monday on two big-name deals:

•VF Corp., whose brands include Lee, Wrangler, Nautica and The North Face, will buy boot and clothing maker Timberland Co. for more than $2.2 billion.

•Wendy’s/Arby’s Group will sell a majority stake in its struggling Arby’s brand to Roark Capital Group, an Atlanta private equity firm. The move marks the end of a short-lived union between the two fast-food chains and represents a role reversal. Arby’s started as the suitor in the relationship and ended up on the chopping block.

VF plans to make Timberland part of its outdoor and actions sports business, and it said Timberland’s headquarters would remain in Stratham, N.H. With the addition of Timberland, VF’s outdoor and action sports business, which also includes Vans, Jansport, Eastpak and other brands, will make up 50 percent of the company’s total revenue.

The deal doesn’t directly affect VF’s Lee jeans brand, which is based in Merriam.

VF is offering $43 for each Timberland share, a premium of 43.4 percent to the latest Timberland closing price.

Timberland shares climbed $13.21, or 44 percent, and closed at $43.20. Timberland stock has traded between $15.07 and $45.27 in the last year.

In the restaurant deal, Wendy’s/Arby’s Group CEO Roland Smith said that the 2008 combination of the two fast-food chains had “absolutely not” been a failure.

“I think that at the time we put the two brands together it was the exact right thing to do,” Smith said, “but any business that continues to do well and perform has to be nimble and adapt to what the market is.”

Wendy’s/Arby’s shares rose 4 cents, less than 1 percent, and closed at $4.56. The shares remain well below $5.90, their price on the day the combination was announced in September 2008.

Roark, which owns Moe’s Southwest Grill, Cinnabon and other restaurants, will pay $130 million in cash for an 81.5 percent stake in Arby’s. It also will assume $190 million worth of Arby’s debt.

Wendy’s/Arby’s will change its name after the sale is completed.

Footwear and clothing maker Timberland Co., which has a research and development room in Stratham, N.H., will be bought for more than $2.2 billion by VF Corp.

Survey sees lag in interest for ‘smart’ grid Designing state health insurance exchanges is crucial Panel Discussion by Bob Unell | Potential buyer for Katz Drug building rejected GM to spend $20 million to upgrade Fairfax Creator of Sheridan’s Frozen Custard unveils Unforked restaurant Original EPA deal in KCK matched purpose of development incentives VF buying Timberland, Wendy’s selling Arby’s Google strikes deal to add Admeld to arsenal Corporate buyout deals nudge stocks higher Labor notes | Republic to reduce stake in Frontier under agreement with pilots Barkley study will look at marketing for the millennial generation Local business news in brief | North Kansas City Hospital unveils expansion plan Starwatch consumer | Airlines gathered $3.4 billion in baggage fees in 2010 The magazine rack | Coal-fired electric plants take their toll Diversity Diva | When you're on salary, hours irrelevant Business letter | A lifesaver Farmers’ successful year helps other parts of U.S. economy New V-6 engines catch up to V-8s – even among truck buyers Stocks drop for a sixth straight week Eliminating shoe tax could save companies, consumers The wheels were turning Monday on two big-name deals:

VF plans to make Timberland part of its outdoor and actions sports business, and it said Timberland’s headquarters would remain in Stratham, N.H. With the addition of Timberland, VF’s outdoor and action sports business, which also includes Vans, Jansport, Eastpak and other brands, will make up 50 percent of the company’s total revenue.

Timberland shares climbed $13.21, or 44 percent, and closed at $43.20. Timberland stock has traded between $15.07 and $45.27 in the last year.

In the restaurant deal, Wendy’s/Arby’s Group CEO Roland Smith said that the 2008 combination of the two fast-food chains had “absolutely not” been a failure.

“I think that at the time we put the two brands together it was the exact right thing to do,” Smith said, “but any business that continues to do well and perform has to be nimble and adapt to what the market is.”