**New York, NY u2013** Private equity giant Bain Capital is exploring a sale of portfolio company Varsity Brands, Inc. that could value the cheerleading and marching band equipment and apparel supplier at more than $6 billion, according to sources familiar with the matter..
Varsity Brands acquired several smaller brands in the cheerleading, dance and marching band industry under the leadership of Bain Capital, which took the company private in a $2.2 billion leveraged buyout in 2017..
Varsity Brands, which targets student and school-aged populations, was founded in 1991 by Jeff Webb. The Memphis-based company has been expanding its offerings beyond cheer uniforms and accessories and into other niches like wrestling, gymnastics, drill, and color guard apparel..
Varsity Brands’ annual sales reached more than $800 million last year, according to a person familiar with the matter. The company is currently in the process of hiring investment banks to lead an auction, which could kick off formally in the coming weeks, the sources said. Representatives for Bain Capital and Varsity Brands declined to comment..
The potential sale of Varsity Brands comes amid a wave of consolidation in the cheerleading and marching band industry, which has increasingly been dominated by large retailers and specialty chains like Dick’s Sporting Goods and Academy Sports + Outdoors. In recent years, a number of Varsity Brands’ competitors have been acquired by larger companies..
For example, Russell Athletic acquired cheerleading uniform maker Champion Cheer in 2018, and Under Armour Inc. acquired gymnastics equipment manufacturer Spieth America Corp. in 2019..
Bain Capital’s investment in Varsity Brands has been a successful one. The private equity firm acquired the company for $2.2 billion in 2017, and it is now looking to cash out at a significant profit..
The sale of Varsity Brands would be the latest in a series of exits for Bain Capital, which has been divesting its portfolio companies at a rapid pace in recent years. In the past 12 months, Bain Capital has sold companies such as Toys u201cRu201d Us, Burlington Stores Inc., and The Carlyle Group..
Bain Capital is a global private equity firm that has been investing in companies for more than 40 years. The firm has a track record of investing in successful companies, and its sale of Varsity Brands is expected to be a major transaction in the private equity industry..
