Global investment firm KKR is set to acquire Varsity Brands, a major player in youth sports and school spirit merchandise, from Bain Capital. This deal marks Varsity’s third private equity owner in a decade, highlighting the volatile nature of the youth sports industry.
Key points:
- KKR to buy Varsity Brands for an estimated $4.75 billion
- Deal involves $2.375 billion in new debt and a $400 million credit line
- Varsity Brands owns Varsity Spirit (cheerleading) and BSN Sports (athletic outfitter)
- Company has faced recent challenges, including antitrust and sexual abuse lawsuits
- Financial position has weakened, with credit ratings dropping to “high-risk” status
- Varsity recently sold Herff Jones to Atlas Holdings
- Legal and financial burdens expected to shift to KKR post-acquisition
This acquisition underscores the continued interest in youth sports businesses despite recent controversies and financial challenges. It also raises questions about the future direction of Varsity Brands under new ownership.
Via: Sportico
Photo: ILLUSTRATION BY LORENZO GORDON
