Vermont Flannel buys Vermont Teddy Bear in a consolidation of Vermont icons

Two iconic Vermont companies have joined forces. The Vermont Flannel Company announced Tuesday that it has acquired the assets of Vermont Teddy Bear.

"I've been a fan of Vermont Teddy Bear for a long time," Vermont Flannel CEO Joe Van Deman said in a statement. "The experience here in Shelburne, the quality of the bears and the way the company gives back to the community are all truly amazing."

The ownership group of Vermont Teddy Bear also sold the assets of their apparel divisions − Pajamagram, Pajamajeans and The 1 for U − to an affiliate of Lionel Capital, an investment firm based in New York City.

Vermont Teddy Bear CEO Bill Shouldice said in a statement that both companies have a history of "creating warmth, comfort and wonderful memories for locals and visitors to Vermont alike."

"It makes so much sense for the next chapter of Vermont Teddy Bear," he said.

Vermont Teddy Bear and Vermont Flannel to remain as distinct companies

Vermont Teddy Bear has its factory and flagship retail store in Shelburne. The Vermont Flannel Company has six retail locations across the state, two of which operate as production facilities as well. The company also has two retail stores in Maine, and plans to open a ninth store in Waterbury this summer.

The two companies combined will employ more than 70 people in Vermont, with several remote employees in other states.

Both companies will continue to operate as standalone brands, but will partner together in various ways. The companies launched two collaborative products last year, including one of Vermont Teddy Bears wearing a Vermont Flannel button-down shirt.

Contact Dan D’Ambrosio at 660-1841 or ddambrosi@gannett.com. Follow him on X @DanDambrosioVT.