VF Corp is separating and forming a new company VF Jeanswear which will be independent and publicly traded as Kontoor Brands. Kontoor’s internal brands will include Wrangler, Lee, Rock & Republic and the VF Outlet business. There may be some issues around the number of shares based on fractional shares, as fractional shares of Kontoor Brands will not be distributed. Those fractional shares will be sold in the open market and the appropriate cash payment for each shareholder’s fractional share will be distributed pro rata.

VF Corp is a big name in strong apparel, footwear and accessories space for years. Even after breaking out the denim and related casual apparel and accessories, VF Corp will still be a diverse amalgamated version of apparel and the related areas that has been assembled via brand launches and acquisitions. It currently has four segments: Outdoor & Action Sports, Jeanswear, Imagewear and Other. Its Outdoor unit includes brands such as North Face, Vans, Timberland, JanSport, Eastpak and Eagle Creek. Imagewear includes Red Kap, Bulwark, Horace Small, Dickies, Workrite, Kodiak, Terra and Walls.

Wall Street has been in the mood of asking larger companies to focus on their core businesses and asking larger companies to unlock value or to allow the investor pool to be able to invest in individual units rather than large jumbled conglomerated or amalgamated structures.