New York-based investment firm KKR announced on Aug. 26 that it had acquired Varsity Brands from Boston-based Bain Capital and Charlesbank.
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The Farmers Branch-based apparel company has a new majority shareholder after closing a multi-billion-dollar deal.
New York-based investment firm KKR said on Aug. 26 it had acquired Varsity Brands from Boston-based Bain Capital and Charlesbank. Terms of the deal were not disclosed. A person familiar with the matter previously told Reuters the purchase price was about $4.75 billion.
The firm acquired the company primarily through its $19 billion fund, North American Fund XIII, which closed in 2022. The fund aims to implement KKR’s extensive employee ownership program at its portfolio of majority-owned companies and pursue “opportunistic” private equity investments, according to a previous press release.
“We look forward to working with[Varsity Brands CEO Adam Blumenfeld]and his passionate team to support their strategy to expand the Varsity Brands platform into new markets and categories while continuing to deliver great products, services and contributions to the sports and education ecosystem,” Angad Singh, a director at KKR, said in a statement.
Susan Crumpton, vice president of public relations for Varsity Brands, said the acquisition will allow the company to continue expanding in the region, but she declined to provide details about the company’s growth plans in North Texas and beyond.
Reuters previously reported that investment firm Bain Capital bought the apparel company in 2018 for about $2.5 billion.
Founded more than 50 years ago, Varsity Brands provides sportswear, spirit gear and other products to more than 150,000 customers, including colleges, club teams and recreational programs, through two divisions, Varsity Spirit and BSN Sports. The company sold a third division, yearbook company Herff Jones, to Atlas Holdings Inc. last year.
“Today marks a pivotal moment for Varsity Brands as we welcome KKR as a new investor. We see great potential for growth as we advance our mission of supporting teams, schools and communities and elevating the experiences of young people across the country,” Blumenfeld said in a statement.
He called it a “proud day for the Varsity Brands team.”
“I am also excited that my colleagues will join KKR and our management team as co-owners of the company,” Blumenfeld said. “I am grateful for the support and partnership from Bain Capital and Charlesbank, whose support has played a critical role in laying the foundation for our continued success.”
Goldman Sachs & Co. and Jefferies acted as financial advisors to KKR, and Simpson Thacher & Bartlett LLP acted as legal advisor. Bank of America Securities and William Blair acted as co-financial advisors to Varsity Brands, and Kirkland & Ellis LLP acted as legal advisor to the company.
