All-Star NEWS: Varsity’s $4.75 billion sale update 💸

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💡 The backstory:​

There have been previous reports that Varsity Brands was potentially valued at over $6 billion.

More recently, we reported on the news that KKR (an investment company) is set to buy Varsity from Bain Capital (the investment firm that owns Varsity Brands) for $4.75 billion.

💸 The news:​

Sportico has reported details on the financials of this deal, which are somewhat complex. To simplify:
  • KKR will acquire Varsity Brands from Bain Capital for $4.75 billion, with the deal expected to close by the end of next month.
  • To finance the acquisition, Varsity will take on $2.375 billion in new debt, plus more. This will help KKR buy out the current Varsity shareholders.
  • Varsity has been losing money but is projected to have some positive cash flow in 2024.
The article also reports on the various lawsuits against Varsity Brands:

“In recent years, Varsity has at times appeared to be the bane of Bain’s existence, with Varsity Spirit being repeatedly accused of operating as an illegal monopoly and harboring a culture of sex abuse in the sport of club cheer.“
For more details, read the full article here.


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