Key Takeaways
- • Bain Capital Private Equity has signed a definitive agreement to acquire Varsity Brands, a market leader in team sports equipment, school spirit products, and achievement recognition, from current owners Charlesbank Capital Partners and Partners Group–managed funds.
- • Varsity Brands operates three core business divisions: BSN Sports (largest U.S. team sports equipment and apparel distributor), Varsity Spirit (cheerleading uniforms, camps, clinics, and competitions), and Herff Jones (graduation and educational products and services), collectively reaching 9,000 employees and independent representatives.
- • Founded in 1974, Varsity Brands serves elementary through collegiate institutions, professional and collegiate sports teams, and corporate clients across the United States, generating revenue through catalog, telesales, e-commerce, and direct sales channels.
- • Financial terms of the acquisition were not disclosed; however, prior sources indicate the company was purchased by Charlesbank Capital Partners for approximately $1.5 billion in 2014 and subsequently valued around $2.5 billion to $4.75 billion by 2018.
- • Adam Blumenfeld, Chief Executive Officer of Varsity Brands, will continue leading the business under Bain Capital ownership, with the new partner emphasizing technology capabilities and consumer expertise to accelerate growth while maintaining the company's commitment to student engagement and empowerment.
Summary
Varsity Brands, a Dallas-based leader in student-focused sports equipment, apparel, and achievement recognition products, has entered into a definitive acquisition agreement with Bain Capital Private Equity, according to an announcement dated June 19, 2018. The transaction represents a transaction of significant scale within the education and youth sports sector, marking Bain Capital's entry into what has been a growth area for private equity investment in consumer-facing educational services.
The company is being acquired from its current owners, Charlesbank Capital Partners and funds managed and advised by Partners Group, which acquired Varsity Brands in 2014. The current transaction represents a partial exit for those investors after a four-year hold period. While specific transaction terms were not disclosed at announcement, historical valuation data suggests the company was acquired for approximately $1.5 billion in 2014, with valuations reported in a range of $2.5 billion to $4.75 billion by the time of the 2018 Bain Capital transaction.
Varsity Brands operates across three distinct business segments serving the education and youth sports markets. BSN Sports functions as the largest team sports equipment and apparel distributor in the United States. Varsity Spirit leads the cheerleading and performing arts segment through uniform design, educational camps, clinics, and competitions. Herff Jones provides graduation products and educational services. The company reaches its customer base—spanning elementary schools through universities, professional sports teams, and corporate clients—through approximately 9,000 dedicated employees and independent representatives via multiple distribution channels including direct mail catalogs, telesales, e-commerce platforms, and on-site sales teams.
Adam Blumenfeld, Chief Executive Officer of Varsity Brands, indicated in the company statement that the Bain Capital partnership would enhance growth acceleration while preserving the organization's core mission. Blumenfeld emphasized that Bain Capital's experience in consumer businesses and technology infrastructure would support the company's expansion strategy and commitment to improving student engagement and participation in school sports and achievement programs.
The company is being acquired from its current owners, Charlesbank Capital Partners and funds managed and advised by Partners Group, which acquired Varsity Brands in 2014. The current transaction represents a partial exit for those investors after a four-year hold period. While specific transaction terms were not disclosed at announcement, historical valuation data suggests the company was acquired for approximately $1.5 billion in 2014, with valuations reported in a range of $2.5 billion to $4.75 billion by the time of the 2018 Bain Capital transaction.
Varsity Brands operates across three distinct business segments serving the education and youth sports markets. BSN Sports functions as the largest team sports equipment and apparel distributor in the United States. Varsity Spirit leads the cheerleading and performing arts segment through uniform design, educational camps, clinics, and competitions. Herff Jones provides graduation products and educational services. The company reaches its customer base—spanning elementary schools through universities, professional sports teams, and corporate clients—through approximately 9,000 dedicated employees and independent representatives via multiple distribution channels including direct mail catalogs, telesales, e-commerce platforms, and on-site sales teams.
Adam Blumenfeld, Chief Executive Officer of Varsity Brands, indicated in the company statement that the Bain Capital partnership would enhance growth acceleration while preserving the organization's core mission. Blumenfeld emphasized that Bain Capital's experience in consumer businesses and technology infrastructure would support the company's expansion strategy and commitment to improving student engagement and participation in school sports and achievement programs.
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