The company has achieved record growth and is well positioned for further expansion
ACON Investments (“ACON”), a private equity firm based in Washington DC, today announced the closing of ACON Strategic Partners II, LP (“ASP II” or the “Continuing Fund”), a new single-asset continuing fund with a Amount of approximately $700 million in connection with the sale of a portion of ACON Equity Partners IV’s (“AEP IV”) portfolio interest to New Era Cap, LLC (“New Era Cap” or the “Company”) and an increase in existing Interest in New Era Cap. In its 102-year history, the company has established itself as the world’s largest authentic licensed sports headwear and lifestyle brand. The iconic New Era Cap brand is the official headgear licensing partner of Major League Baseball, the National Football League and the National Basketball Association, as well as more than 170 other licensed partnerships across a wide variety of headgear, apparel and accessories.
The continuation fund managed by ACON is supported by both new and existing limited partners of ACON. The new investors are led by Apollo, GCM Grosvenor, Hamilton Lane and Neuberger Berman on behalf of their respective funds under management. ACON Investments and ACON Equity Partners IV continue to hold significant interests in the company.
New Era Cap designs, markets and distributes over 200 million pieces of headwear and apparel annually and has enjoyed record organic sales growth for several years, which is expected to continue for the foreseeable future. ACON’s initial investment in January 2021 was the company’s first and only institutional venture capital. The company continues to pursue a multi-pronged growth strategy that includes continued expansion of its 800+ retail stores in Asia, Mexico, Latin America and Brazil, as well as growth of its core lifestyle apparel brand and DTC platform. New Era Cap will continue to be led by Chris Koch, the fourth-generation CEO whose great-grandfather, Ehrhardt Koch, founded New Era Cap in Buffalo, New York in 1920.
Ken Brotman, Founding Partner of ACON Investments, commented, “New Era Cap represents a unique and protected opportunity, with ACON acting as an early partner for the Company and the first institutional equity for this iconic 102-year-old brand. We are honored to “To be the trusted partner of the Company and have great respect for New Era Cap’s long and rich history and what Chris Koch and the management team have built. It has been one of our best portfolio investments under ACON Equity Partners IV and we are delighted.” We look forward to continuing our partnership with Chris and the team to drive continued growth and expansion around the globe.”
Chris Koch, CEO of New Era Cap, stated: “We are very excited to expand our relationship with ACON and to draw on their vast experience in the lifestyle and consumer goods space. Their proven track record of helping companies grow and expand has made ACON “The perfect partner for our company. This new capital will facilitate the acceleration of our aggressive growth initiatives and allow us to consider potential North American and global acquisitions that could complement our already strong global platform.”
As part of the transaction, Major League Baseball, the National Football League and the National Basketball Association will become minority owners of New Era Cap. Jim Grundtisch, New Era Cap’s Chief Revenue Officer, commented, “Having our three largest league partners linked to us through a strategic equity investment further solidifies our already strong partnerships. We are committed to continuing the robust global growth trajectory we are creating for our brand and for our key global partners to continue into the future.”
ACON was represented in the transaction by Evercore. Jefferies LLC also acted as financial advisor to ACON, while Winston & Strawn acted as legal advisor to ACON. Truist Securities acted as exclusive financial advisor and Bryan Cave Leighton Paisner acted as legal counsel to New Era Cap.
About New Era Cap, LLC
Since 1920, New Era Cap has been handcrafting the finest headwear in the world. Today, the brand is a market leader with its clothing and accessory lines that has its roots in sports and influences street and lifestyle culture around the globe. With more than 170 licenses in its portfolio, New Era Cap is the brand of choice in the world of sports, fashion, music and entertainment. The company is headquartered in Buffalo, NY and its products are sold in more than 120 countries. For more information on New Era Cap’s global offices and partnerships, visit www.neweracap.com and the @neweracap social channels.
Information on ACON Investments
Headquartered in Washington, DC, ACON Investments, LLC is an international private equity firm that manages private equity funds and special purpose partnerships investing in the United States, Latin America and Europe. With professionals in Washington, DC, Dallas, Los Angeles, New York, Bogotá, Madrid, Mexico City and São Paulo, ACON has managed $6.9 billion in assets since inception and has a 26-year track record of success.
ACON US is one of the most established private equity firms with an organic diversity. 70% of senior management (excluding founders) and 68% of all employees are women and/or people from diverse backgrounds. ACON is a value investor with extensive experience in the consumer, industrials and business services sectors and a track record of success in situations involving initial institutional capital for family businesses, brand repositioning, industry consolidation and company spin-offs. Additionally, ACON is focused on a new paradigm of strategic sustainability across its portfolio, aimed at delivering sustainable results while increasing financial returns and profitability.
For more information, please visit www.aconinvestments.com
Press contact
Contact:
ACON Investments, L.L.C.
[email protected] | 202.454.1100
Matt Davison, The Martin Group for New Era Cap, LLC
[email protected] | 716.604.7772
Amy Moritz, The Martin Group für New Era Cap, LLC
[email protected] | 716.863.2357
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Original content from: ACON Investments, LLC, transmitted by news aktuell
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