Bain Capital, the American private investment firm, is exploring a sale or initial public offering (IPO) of Varsity Brands that could value the US maker of sports uniforms and school yearbooks at more than US $ 6 billion, including debt, according to sources.
According to the sources, Bain has begun interviewing with investment banks to appoint financial advisors who will assist the private equity company in devising a strategy to sell its controlling interest in Varsity Brands.
The sources also mentioned that Varsity Brands makes over US $ 400 million in earnings in a year before interest, taxes, depreciation, and amortisation.
BSN SPORTS and Varsity Spirit are the two primary companies that make up Varsity Brands. BSN provides clothes and equipment for team sports, that may be customised, through collaborations with companies like Under Armour and Nike.
In addition to offering cheerleading clothing and uniforms for sale, Varsity Spirit offers competitions, clinics, and educational camps.
Bain acquired Varsity Brands in 2018 from private equity firms Charlesbank Capital Partners and Partners Group for around US $ 2.5 billion, according to news reports at the time.
