• Loading stock data...
Sunday, June 16, 2024

New Era’s Acquisition of ’47 Set to Reshape Sports Apparel Market

  • New Era is set to acquire ’47 in a deal creating a combined operation with $2 billion in annual revenue.
  • Two of the longest-running and most entrenched makers of licensed sports league headwear and apparel are coming together in a deal poised to reshape the market significantly.
Kirby Lee-USA TODAY Sports

Two of the longest-running and most entrenched makers of licensed sports league headwear and apparel are coming together in a deal poised to reshape the market significantly.

Buffalo-based New Era Cap—which has ties to the NFL, NBA, MLB, NHL, and hundreds of colleges—is acquiring key competitor and fashion brand ’47. Headquartered in Massachusetts, ’47 was started in 1947 by twin brothers Arthur and Henry D’Angelo, while the Koch family has led New Era across four generations since its 1920 founding. 

Financial terms were not disclosed for this deal bringing together the two venerable companies. But New Era said the combined operation is projected to generate about $2 billion in annual revenue. Both the New Era and ’47 brands will be retained, and a deal closing is targeted by the end of the year.

“Our two companies have a shared history, having begun as family businesses dating back generations and transforming through passion and hard work into globally recognized brands,” New Era CEO Chris Koch said in a statement. “Through this transaction, we will offer a breadth of products across both brands and enhance how we serve our customers and partners around the world.”

Investment Matters

ACON Investments, a private equity firm that bought into New Era in 2021, will maintain a “significant stake” in the combined company. 

The agreement will give New Era greater scale, particularly as the entire licensed sports merchandise business continues to see widespread consolidation, much of it through the aggressiveness of Fanatics into additional areas.

Last fall, Reuters reported that New Era was considering an initial public offering worth as much as $5 billion. That potential of a stock issue still exists but, if it happens, will likely be at a higher figure.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Charles Barkley Announces Retirement From Television

Charles Barkley announced that the 2024-25 season would be his final season as an NBA commentator, capping off 25 years with Turner.

ESPN Bought Its Tiny Stanley Cup Desk at a Canadian Furniture Store

An ESPN spokesperson says the tight spot was chosen for its view of the ice.
General view of the stadium during the game between the LSU Tigers and the Wake Forest Demon Deacons at Charles Schwab Field Omaha. Mandatory Credit: Steven Branscombe-USA TODAY Sports

College World Series: Record Crowds and TV Viewership Anticipated

The eight-team bracket has four schools each from the ACC and SEC.
podcast thumbnail mobile
Front Office Sports Today

How the US Open is Designed for Drama

0:00

Featured Today

Jan 3, 2022; Pittsburgh, Pennsylvania, USA; General view of the NFL shield logo signage before the Pittsburgh Steelers host the Cleveland Browns at Heinz Field.

Odds Stacked Against NFL in Multibillion-Dollar Sunday Ticket Trial

Why the class action trial does not look promising for the league.
Jan 7, 2024; San Francisco, California, USA; Toronto Raptors forward Jontay Porter (11) takes a three-point shot against the Golden State Warriors during the second half at Chase Center.
June 9, 2024

‘Bound to Happen’: The Age of the Sports Betting Scandal Has Arrived

A banishment, betting scheme, and guilty plea all in one scandal-filled span.
June 8, 2024

‘Experimental in Nature’: The Rapid, Confounding Rise of Streaming Bundles

Here’s why confusion continues to outweigh solutions in the streaming package boom.
June 2, 2024

The Nostalgia Market: Michael Jordan’s Memorabilia Remains Coveted, With Caveats

Due to scarcity, and sometimes, items’ undisclosed whereabouts, this world has limitations.

The ‘Big’ in Big 12 Could Soon Be Replaced With a Sponsor’s Name

Allstate is said to be in discussions about a deal with the Big 12.
June 12, 2024

Saudi Arabia’s Next Big Sports Target: Boxing, With Joint Venture Worth $5B

The Public Investment Fund of Saudi Arabia is focusing on boxing as its next large-scale sports target.
June 13, 2024

Everything You Need to Know About the Schism Rocking Competitive Eating

The business story about hot dogs that you never knew you needed.
Sponsored

How HOKA is Reimagining the NIL Relationship

HOKA, the renowned athletic footwear and apparel brand, is betting on a new reality with NIL.
June 11, 2024

Breakthrough? Tiger Says PGA Tour and LIV Golf Are Eyeing ‘End Game’

Woods called a recent meeting ‘productive.’
June 10, 2024

Salt Lake City’s $4B Olympics Price Tag Could Be a Bargain: Here’s Why

Utah is the preferred bidder for the 2034 Games.
June 5, 2024

One Year After ‘Merger,’ the PGA Tour and LIV Golf Still Remain Far Apart

Leaders of the tours struck an agreement exactly one year ago.
June 4, 2024

Breaking Down the Winners and Losers of Mbappé to Real Madrid

Mbappé’s new contract at Madrid is for five years.