New Era’s deal, announced late Thursday, to acquire one of its competitors in the sport and lifestyle cap and apparel industry, will make it a much bigger player in the market and push its annual sales to around the $2 billion mark.
Like New Era, ’47 offers a wide range of licensed headwear, apparel and gear, and more recently, has had more of a focus on its fashion and cultural influences. “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,” said Christopher H. Koch, chief executive officer of New Era. “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.”The D’Angelo family has owned ’47 for generations.
ACON Investments, 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 company. The NFL, NBA and MLB acquired minority stakes in New Era during a 2022 fundraising round.