A North Texas sports apparel company just sold for reported $4.7 billion

 

New York-based investment firm KKR announced on Aug. 26 it acquired Varsity Brands from Boston-headquartered Bain Capital and Charlesbank.

FARMERS BRANCH, Texas — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.

A Farmers Branch-based apparel company has a new majority owner after the closure of a multi-billion dollar deal.

New York-based investment firm KKR announced on Aug. 26 it acquired Varsity Brands from Boston-headquartered Bain Capital and Charlesbank. The terms of the deal were not disclosed. Sources familiar with the matter previously told Reuters the acquisition was an approximately $4.75 billion deal .

The firm purchased the company primarily through a $19 billion fund it closed in 2022, North American Fund XIII. According to a previous press release, the fund seeks to implement KKR’s broad-based employee ownership program at the majority-owned companies it invests in and pursue “opportunistic” private-equity investments.

“We look forward to working alongside [Varsity Brands CEO Adam Blumenfeld] and his passionate team to support their strategy for growing Varsity Brands’ platform in new markets and categories while continuing to deliver exceptional products, services and contributions to the sports and education ecosystems,” Angad Singh, director at KKR, said in a statement.

Susan Crumpton, vice president of communications at Varsity Brands, said the acquisition will allow the company to continue growing its operation in the area but didn’t share specifics on the company’s growth plans for North Texas and beyond.

Investment firm Bain Capital purchased the apparel company in 2018 for about $2.5 billion, Reuters previously reported.

Established more than five decades ago, Varsity Brands provides sportswear, spirit gear and other products to more than 150,000 customers including universities, club teams and recreational programs through two divisions, Varsity Spirit and BSN Sports. The company sold its third segment, yearbook company Herff Jones, to Atlas Holdings last year.

“Today is a pivotal moment for Varsity Brands as we welcome KKR as our new investor. We see immense growth potential as we advance our mission to support teams, schools and communities, elevating the experience for young people nationwide,” Blumenfeld said in a statement.

He called it “a proud day for the Varsity Brands team.”

“I am also excited for our colleagues to join KKR and our leadership team as co-owners of the Company,” Blumenfeld stated. “We are grateful for the support and partnership from Bain Capital and Charlesbank. Their support has been instrumental in laying the foundation for our continued success.” 

Goldman Sachs and Jefferies served as KKR’s financial advisors while Simpson Thacher & Bartlett LLP was its legal advisor. BofA Securities and William Blair were Varsity Brands’ joint financial advisors, and Kirkland & Ellis LLP was the company’s legal advisor.