HOBOKEN, NJ: Major League Baseball announced Tuesday is is acquiring an ownership stake in Rawlings Sporting Goods Co, the league’s longtime baseball and helmet supplier, for approximately $395 million.
MLB is co-investing along with private investment firm Seidler Equity Partners (SEP) for the purchase of the 131-year-old company, which is owned by Newell Brands Inc.
Rawlings, founded in 1887 and based in St. Louis, MO, comprises the Rawlings, Miken and Worth brands.
Chris Marinak, MLB’s executive vice president for strategy, technology & innovation, said: “MLB is excited to take an ownership position in one of the most iconic brands in sports and further build on the Rawlings legacy, which dates back to 1887. We are particularly interested in providing even more input and direction on the production of the Official Ball of Major League Baseball, one of the most important on-field products to the play of our great game.”
Newell had acquired Rawlings in 2016. The Hoboken, New Jersey, company also owns Sharpie and Rubbermaid.
“We are pleased with the agreement to sell Rawlings at an attractive multiple,” said Michael Polk, Newell Brands president and chief executive officer. “Rawlings is an iconic brand and Seidler Equity Partners, in partnership with Major League Baseball, will identify new opportunities for this brand and for the company’s employees. This transaction is a pivotal step in our company’s transformation to become a more focused, forward-facing consumer goods company with tremendous opportunities.”
Morgan Stanley acted as financial advisor to Newell Brands on the transaction. Bank of America Merrill Lynch acted as financial adviser to SEP.
