Lifestyle apparel company VF Corporation has acquired the remaining two-thirds of the capital stock of Mo Industries, owner of the Splendid and Ella Moss contemporary sportswear brands.

VF had previously purchased one-third of Mo Industries stock from its owners, founder Moise Emquies and Summit Partners, a private equity and venture capital firm for growth companies, in June 2008.

The Splendid and Ella Moss brands will become part of VF’s Contemporary Brands coalition, which also includes the 7 For All Mankind and lucy brands. In addition, VF has decided to shift responsibility for its John Varvatos luxury men’s sportswear business from its Sportswear coalition to its Contemporary Brands coalition, further underscoring its commitment to growing its Contemporary Brands portfolio.

Mr Emquies, who has been serving as Chief Executive Officer and President, will continue as Founder/Chief Executive Officer, reporting to Mike Egeck, President of Contemporary Brands.

Jonathan Saven, who has been serving as Chief Financial Officer and Chief Operating Officer of Mo Industries, has been promoted to President. Pamella Protzel Scott will continue in her role as Creative Director for Splendid and Ella Moss.

The Splendid and Ella Moss brands are expected to contribute approximately $70 million to 2009 revenues and be slightly accretive to earnings per share; these expectations were incorporated into VF’s revenue and earnings guidance provided on February 10. While these brands are not immune to the current economic downturn, VF expects that over the long-term their revenues could grow 10% to 15% annually.

The acquisition cost of two-thirds of the capital stock was $161 million, plus the repayment of $47 million in existing net debt, and will be funded through VF’s strong cash flow from operations.