19th February, 2022
Fanatics is on an acquisitive streak. The sports merchandising firm is teaming up with a group of celebrities including Jay-Z to buy nostalgic jersey and streetwear firm Mitchell & Ness for $250 million, according to Reuters.
The price for the merchandiser looks like a winner.
Fanatics will own 75% of Mitchell & Ness, which has agreements with sports franchises including the National Football League.
The other 25% stake will be held by a consortium that also includes rapper Meek Mill and TikTok phenom, the D’Amelio family.
Mitchell & Ness made about $70 million in profit on $350 million of revenue last year, Reuters reported.
That makes the deal less than 1 times sales, below Nike at 4 times trailing 12-month sales or even Adidas.
Fanatics recently bought rival Topps’ trading card business for a steal, too. This latest deal is another score.