ACON Investments secures strategic expansion for New Era by acquiring ’47

In a significant move within the sports and lifestyle brand sector, New Era Cap, LLC, a leading global lifestyle brand, has announced the acquisition of ’47, a renowned premium sports lifestyle brand. Although the financial specifics of the deal remain undisclosed, the acquisition is facilitated by ACON Investments, L.L.C., a private equity firm based in Washington, D.C., and the parent company of New Era.

Expanding Global Footprint and Diversifying Product Lines

The strategic merger of New Era and ’47 is poised to reshape the global sports apparel landscape. Both companies, rooted in family-founded histories and a deep connection to sports, fashion, and culture, anticipate a combined annual revenue of around $2 billion. This alliance will enhance their licensing partnerships with prominent sports leagues and events worldwide, such as Major League Baseball, the National Basketball Association, and the National Football League, alongside over 900 collegiate programs and various international sports associations.

Statements from Leadership

Christopher H. Koch, CEO of New Era, expressed enthusiasm about the acquisition, highlighting the shared values and long-standing mutual respect between the two companies. “This transaction not only unites two esteemed brands but also broadens our product offerings and strengthens our global market presence,” said Koch.

Dominic Farrell, President of ’47, also commented on the merger’s significance, emphasizing the accelerated growth and expanded international reach it will bring to ’47. “Joining forces with New Era allows us to leverage their extensive league partnerships and global distribution networks, propelling ’47 to new heights,” Farrell stated.

Strategic Implications and Future Prospects

ACON’s Founding Partner, Ken Brotman, remarked on the transaction’s strategic benefits, foreseeing accelerated growth and expanded market penetration for both brands. “This partnership is a testament to our successful investment in New Era and our commitment to fostering growth through strategic alliances,” Brotman noted.

The combined entity will operate with continued independence from their respective headquarters in Buffalo, New York, and Westwood, Massachusetts. The transaction is slated for completion by the end of 2024, pending customary closing conditions and regulatory approvals.

Legal and Financial Advisors

The acquisition has garnered support from several prominent financial institutions, with BofA Securities, Inc., JPMorgan Chase Bank, N.A., and others providing committed financing. Legal counsel roles were filled by Bryan Cave Leighton Paisner LLP for New Era, and Goodwin Procter LLP for ’47, with William Blair acting as the exclusive financial advisor to ’47.

The merger of New Era and ’47 is not just a consolidation of two major brands but a strategic maneuver that promises significant synergistic benefits. By combining their strengths, the new entity is well-positioned to innovate and expand its global footprint, marking a new chapter in the sports lifestyle market.