A Dallas-area company that provides sports gear for students is under new ownership in a deal that could be worth billions of dollars.
KKR, a New York-based company, acquired the Farmers Branch-based business from two other private equity firms, Bain Capital and Charlesbank, according to a statement this week.
While terms of the deal were not disclosed, a report in Reuters last month said the acquisition from Bain was for $4.75 billion, including debt, citing people familiar with the matter. The move comes after Varsity Brands sold the Herff Jones graduation business last year — while keeping the yearbook business. Terms of that deal were not disclosed.
With the new agreement, KKR is backing Varsity Brands’ growth efforts as it provides products for school and team sports, athletics and other programs. The company — with a history going back five decades — has more than 150,000 customers, including universities, schools and club teams. It also has longstanding relationships with key names in sports gear such as Nike, Adidas, Under Armor and Lululemon.
“KKR’s ownership marks the beginning of an exciting new chapter for Varsity Brands,” said Susan Crumpton, vice president, corporate communications, for Varsity Brands, in an email. “This partnership brings additional resources and strategic support to help us grow and better serve our customers. With their support, we will continue to grow and fulfill our mission of supporting schools, teams, and communities, and reinforce our commitment to safety.”
The company has about 5,500 regular employees and around 4,000 seasonal team members, Crumpton said in the email.
KKR will support an equity ownership program to provide all employees with the opportunity to become co-owners of Varsity Brands, the investment firm said.
“We look forward to working alongside Adam 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 the statement.
