**Bain Capital Private Equity Eyes Varsity Brands Cash-Out at $6 Billion-Plus Valuation**
**Key Points:**
* Bain Capital Private Equity is exploring a sale of Varsity Brands, a provider of cheerleading, dance and gymnastics apparel and accessories.
* The Boston-based firm could seek more than $6 billion for the business, which could attract interest from both strategic and financial buyers.
* Varsity Brands, which is based in Memphis, Tennessee, sells apparel, accessories, and footwear for cheerleading, dance, and gymnastics; it also offers camps, clinics, and other education programs. The company has more than 400,000 customers in the United States and Canada.
**Detailed Analysis:**
Bain Capital Private Equity, the Boston-based investment firm, is exploring a sale of Varsity Brands, a provider of cheerleading, dance and gymnastics apparel and accessories, according to people familiar with the matter. The firm could seek more than $6 billion for the business, which could attract interest from both strategic and financial buyers, the people said. Varsity Brands, which is based in Memphis, Tennessee, has been owned by Bain Capital Private Equity since 2017. The company sells apparel, accessories, and footwear for cheerleading, dance, and gymnastics; it also offers camps, clinics, and other education programs. The company has more than 400,000 customers in the United States and Canada.
The potential sale of Varsity Brands comes at a time when the cheerleading and dance industries are growing. According to the National Cheerleading Association, there are more than 3 million cheerleaders in the United States, and the industry is expected to grow to $2.5 billion by 2023. The dance industry is also growing, with more than 25 million dancers in the United States. The industry is expected to grow to $17 billion by 2023.
A sale of Varsity Brands could attract interest from a variety of buyers. Strategic buyers could include sporting goods retailers, apparel companies, and education companies. Financial buyers could also be interested in the company, given its strong financial performance. The company generated revenue of approximately $500 million in 2022 and is expected to grow in the future. Varsity Brands is expected to generate revenue of approximately $600 million in 2023, up from $500 million in 2022. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to increase from $125 million in 2022 to $150 million in 2023.
In conclusion, the potential sale of Varsity Brands is a sign of the growing interest in the cheerleading and dance industries. The company’s strong financial performance and its large customer base make it an attractive target for both strategic and financial buyers..
