Seidler Equity has agreed to acquire Rawlings Sporting Goods Company from publicly traded Newell Brands for $395 million. Major League Baseball, which relies on Rawlings for its official game ball and other products, is co-investing alongside Seidler.
Rawlings manufactures and markets baseball, basketball, football, and softball sporting goods for professional athletes, national governing bodies, and sports leagues worldwide. The company’s products – sold under the Rawlings, Miken and Worth brands – include gloves, wood and alloy bats, helmets, protective products, baseballs, bags, batting gloves, pants, and outer wear. Rawlings’ 2017 net sales were approximately $330 million. The company was founded in 1887 and is based in St. Louis (www.rawlings.com).
Rawlings’ baseballs have been the official, and exclusive, game balls of Major League Baseball since 1977 and the company’s contract as MLB’s official ball and helmet supplier runs through 2021. “MLB is excited to take an ownership position in one of the most iconic brands in sports and further build on the Rawlings legacy,” said Chris Marinak, MLB’s Executive Vice President for Strategy, Technology & Innovation. “We are particularly interested in providing even more input and direction on the production of the Official Ball of Major League Baseball, one of the most important on-field products to the play of our great game.”
Rawlings was acquired by Newell through its April 2016 acquisition of Jarden Corp. and the sale of the business to Seidler Equity is part of Newell’s previously announced plans to divest some of its brands. “We are pleased with the agreement to sell Rawlings at an attractive multiple,” said Michael Polk, CEO of Newell Brands. “Rawlings is an iconic brand and Seidler Equity, in partnership with Major League Baseball, will identify new opportunities for this brand and for the company’s employees. This transaction is a pivotal step in our company’s transformation to become a more focused, forward-facing consumer goods company with tremendous opportunities.”
Seidler Equity was founded in 1992 by brothers Peter Seidler and Robert Seidler and has more than $2 billion in capital under management. The firm is headquartered in Marina del Rey, CA (www.sepfunds.com). Peter Seidler is the managing partner of the holding company that owns the San Diego Padres and he is also a member of Major League Baseball’s Ownership Committee and Investment Committee.
Newell Brands (NYSE: NWL) is a global consumer goods company with a portfolio of well-known brands including Paper Mate, Sharpie, Parker, Elmer’s, Coleman, Jostens, Oster, Sunbeam, and many others. The company is headquartered near New York in Hoboken, NJ (www.newellbrands.com).
Morgan Stanley was the financial advisor to Newell Brands and Bank of America Merrill Lynch advised Seidler Equity.
The sale of Rawlings is expected to close by the end of July.
© 2018 Private Equity Professional | June 6, 2018
