North Texas Sports Apparel Company Varsity Brands Acquired for $4.7 Billion

FARMERS BRANCH, Texas — KKR, a New York investment firm, has made a significant move by acquiring Varsity Brands, a Farmers Branch-based sports apparel company. The deal, reported to be worth approximately $4.7 billion, represents a major shift in the ownership of this North Texas company.

On August 26, 2024, KKR announced its purchase of Varsity Brands from Boston-based Bain Capital and Charlesbank. Although the official terms remain undisclosed, sources close to the deal valued it at around $4.75 billion. KKR primarily funded the acquisition through its $19 billion North American Fund XIII, which closed in 2022.

Founded over five decades ago, Varsity Brands has grown into a key player in the sports apparel industry. The company serves over 150,000 customers, including universities, club teams, and recreational programs, through its two main divisions, Varsity Spirit and BSN Sports. Last year, Varsity Brands sold its third segment, Herff Jones, a yearbook company, to Atlas Holdings.

KKR’s acquisition strategy includes implementing broad-based employee ownership programs in its majority-owned companies and pursuing strategic private-equity investments. Goldman Sachs and Jefferies provided financial advice to KKR, while Simpson Thacher & Bartlett LLP offered legal counsel. BofA Securities and William Blair served as joint financial advisors to Varsity Brands, with legal counsel from Kirkland & Ellis LLP.

This acquisition opens a new chapter for Varsity Brands, and many are watching to see how KKR’s ownership will influence the company’s future direction and growth in the competitive sports apparel market.