VF Corporation has announced an agreement in which it will acquire the iconic global brand Supreme.

In a joint statement, the two entities revealed on Monday that they had inked a "definitive merger agreement." As part of the agreement, current investors—i.e. the Carlyle Group and Goode Partners—are selling their stakes in Supreme. The deal itself is set to be completed by the end of the year. Supreme founder James Jebbia will remain with the company, as will the brand's senior leadership team.

"We are proud to join VF, a world-class company that is home to great brands we've worked with for years, including The North Face®, Vans®, and Timberland®," Jebbia said Monday. "This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we've been on since 1994."

Steve Rendle—VF chairman, president, and CEO—shared similar optimism regarding the potential for this deal to ensure "long-term growth" for all involved.

"The acquisition of the Supreme® brand is further validation of our vision and strategy to further evolve our portfolio of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector," Rendle said. "The Supreme® brand will further accelerate VF's hyper-digital business model transformation and will be a meaningful driver of VF's commitment to top quartile total shareholder return and long-term value creation."

Per a report from CNBC, the deal sees VF paying $2.1 billion for the Supreme company, with an additional $300 million payment to be made "subject to satisfaction of certain post-closing milestones."