WASHINGTON: ACON Investments, L.L.C. has announced an agreement under which New Era Cap, LLC, a global lifestyle brand with a deeply rooted connection to sport, fashion and culture, will acquire ’47, a privately held premium sports lifestyle brand.
New Era is a portfolio company of ACON, a Washington, D.C.-based private equity firm. Financial terms of the transaction were not disclosed.
Uniting New Era and ’47 brings together two family-founded brands deeply rooted in sport, fashion and culture that will be positioned to deliver an expanded and diversified product portfolio of apparel and accessories globally. Together, the brands will continue and grow their licensing partnerships with many of the largest global sports leagues and events, including Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League, in addition to over 900 collegiate programs, European soccer clubs, U.S. and European auto racing teams, Grand Slam tennis tournaments and major golf championships, among others.
The combined company is expected to generate approximately $2 billion in annual revenue.
“We are pleased to have reached this agreement to acquire ’47, a company that shares our commitment to making iconic products and delivering premium experiences,” said Christopher H. Koch, chief executive officer of New Era. “We have known and respected the D’Angelo family and the ’47 team for many years and have tremendous respect for the business they have built. Our two companies have a shared history, having begun as family businesses dating back generations and transforming through passion and hard work into globally recognized brands. Through this transaction, we will offer a breadth of products across both brands and enhance how we serve our customers and partners around the world. We will also have opportunities to build on ’47’s strong North American presence internationally in new markets where New Era already has distribution capabilities and a strong customer base. We look forward to leveraging the complementary talent across our two companies and continuing our growth journey for years to come.”
“Today’s (Friday’s) announcement marks a major milestone for ’47 and is a testament to all we have achieved over the last 75+ years in growing from a single street cart outside Fenway Park to a successful business and premier sports lifestyle brand,” said Dominic Farrell, President of ’47. “New Era’s core values of creativity and self-expression, combined with its league partnerships, international presence and global distribution capabilities make them the ideal partner for us. We are excited by the opportunities to accelerate our growth and expand the international reach of the ’47 brand and bring more premium products to passionate consumers globally.”
Ken Brotman, a founding partner at ACON added, “We want to congratulate both the New Era and ’47 teams on this successful transaction. We expect the combination of these two complementary businesses to accelerate the growth of both brands in the global sports headwear and apparel market, while also reaching new markets and customers around the globe. The ACON – New Era partnership has been a successful and impactful one. It has been a pleasure to work alongside the New Era team since our initial investment in 2021. We look forward to supporting the combined company as it leverages the procurement and distribution networks of both New Era and ’47, and executes on its strategic growth plan both domestically and internationally.”
Following the close of the transaction, the New Era and ’47 brands will continue to serve consumers independently from each company’s respective headquarters in Buffalo, New York, and Westwood, Massachusetts, with ’47 led by Dominic Farrell.
The transaction is expected to close by the end of 2024, subject to customary closing conditions, including receipt of regulatory approvals.
ACON, a private equity investment firm based in Washington, D.C., which initially invested in New Era in January 2021 as its first institutional equity capital, will maintain a significant stake in the combined ompany.
