Private equity firm KKR has completed the acquisition of Varsity Brands from buyout firm Bain Capital for approximately $4.75 billion, including debt, announced today. This acquisition transfers majority ownership of Varsity Brands from Bain Capital and Charlesbank to KKR, marking a significant development in the cheerleading, dance and spirit industry.
KKR, which has a history of investments in the sporting goods sector, stated it will support Varsity Brands as it continues to grow its business. The acquisition was primarily funded through KKR’s North America Fund XIII.
Varsity Brands is comprised of key divisions including BSN Sports, the largest team dealer and online sports outfitter in the U.S., and Varsity Spirit, which focuses on the cheerleading and team sports market. These divisions collectively serve over 150,000 customers, ranging from colleges and universities to club teams and recreational programs.
The deal, valued at approximately $4.75 billion including debt, follows Bain Capital’s 2018 acquisition of Varsity Brands for around $2.5 billion from private equity firms Charlesbank Capital Partners and Partners Group. Recently, discussions of a potential sale or initial public offering (IPO) had been reported, which would have valued Varsity Brands at over $6 billion, including debt.
Varsity Brands is noted for generating over $400 million in 12-month EBITDA (earnings before interest, taxes, depreciation, and amortization). The company is recognized for its strong partnerships with global athletic brands such as Nike, adidas, Under Armour, New Balance, and Lululemon.
As part of its strategy, KKR plans to introduce a broad-based equity ownership program at Varsity Brands. This initiative will allow all employees to share in the benefits of ownership, reflecting KKR’s approach that employee engagement through ownership can contribute to building stronger companies. Since 2011, KKR has awarded billions of dollars in equity value to over 100,000 non-senior management employees across more than 50 of its portfolio companies.
Adam Blumenfeld, CEO of Varsity Brands, commented on the acquisition, stating, “Today is a pivotal moment for Varsity Brands as we welcome KKR as our new investor. We see potential for growth as we continue to support teams, schools, and communities across the country.”
Blumenfeld also acknowledged the support from Bain Capital and Charlesbank, noting their role in shaping Varsity Brands’ current success.
Angad Singh, a director at KKR, added, “We look forward to working with Adam and the Varsity Brands team to support their strategy for expanding into new markets and categories while continuing to deliver high-quality products and services.”
This acquisition is expected to influence the cheerleading and team sports industry as Varsity Brands continues its operations under new ownership.
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