By: Sean Davis June 7, 2024
Merger of Iconic Brands - Buffalo-based New Era Cap, known for its ties to major sports leagues like the NFL, NBA, MLB, and NHL, is acquiring Boston-based '47 brand. Both are long-standing, family-owned companies - New Era was founded in 1920 and '47 by twin brothers in 1947. The deal combines two iconic brands in the licensed sports apparel market.
Expanded Scale and Reach - The combined company is projected to generate around $2 billion in annual revenue. Both the New Era and '47 brands will be retained post-acquisition. This gives New Era greater scale and reach in the consolidating licensed sports merchandise business.
Financial Backing - The financial terms of the deal were not disclosed. Private equity firm ACON Investments, which bought into New Era in 2021, will maintain a "significant stake" in the merged entity. Reports indicate New Era was previously considering an IPO valued at up to $5 billion, which could still happen at a higher valuation after this acquisition.
Strategic Rationale - New Era CEO Chris Koch cited the companies' shared histories and ability to offer a broader product range across both brands globally. The deal allows New Era to enhance how it serves customers and partners worldwide. It positions the combined entity strongly amid increasing consolidation in the licensed sports merchandise space, led by Fanatics' expansion.
The acquisition of '47 by New Era merged two iconic brands with over $2 billion in projected revenue and financial backing to compete more effectively on a larger scale.
*****
Comments