BUSINESS OF SPORTS New Era Cap Co. is bulking up. New Era's deal, announced late Thursday, to acquire one of its competitors in the sport and lifestyle cap and apparel industry, will make it a much bigger player in the market and push its annual sales to around the $2 billion mark.
New Era, based in Buffalo, is purchasing Massachusetts-based fashion brand '47 with the goal of expanding and diversifying its product portfolio of headwear, apparel and accessories. The transaction is expected to close by the end of 2024, subject to regulatory approvals. Financial terms were not disclosed, but ACON Investments, the private equity firm that took an ownership stake in New Era in 2021, will hold a "significant" stake in the combined company, the firms said.
New Era said it had lined up financing for the deal through a consortium of seven banks. The two companies will continue to operate on their own after the purchase is finalized. Like New Era, '47 offers a wide range of licensed headwear, apparel and gear, and more recently, has had more of a focus on its fashion and cultural influences.
The move enhances licensing partnerships already in place with many of the largest global sports leagues, including the likes of Major League Baseball, National Basketball Association, National Football League and National Hockey League, in addition to over 900 collegiate programs, NASCAR and European and Major League soccer clubs. "Through this transaction, we will off er a breadth of products acr.
