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No one connected to cheer is going to buy this. Its valued at $2.5 billion! Or they are going to chop the company up into small bits and sell off the parts? I don't see this as going well for the cheer industry.
 
No one connected to cheer is going to buy this. Its valued at $2.5 billion! Or they are going to chop the company up into small bits and sell off the parts? I don't see this as going well for the cheer industry.
It's def getting chopped up. Herff Jones hemorrhages cash.

Charlesbank, Partners Group pursue $2.5B sale | PitchBook

What happens to your rebates if they sell?

What happens to your favorite EP if they are determined not solvent enough to keep around after the sale?

What happens if someone else completely disconnected from cheer buys it?

What happens if someone amazing who loves cheer buys it?

Interesting summer to be sure...

I was tweeting about this yesterday.

I had heard they were looking for a whole buyer of VB but no companies wanted it all. So the investment bank is going for profit by auctioning in pieces. I could see BSN and VS staying together and getting bought by someone like Nike/UA/Another-Bank.

Also I could see an investment group trying to just get VS out of the mix too. And my gut says that Jeff Webb would be the leader of one of those groups to get his company, his baby, back within his control.

Wildest Scenario that played out in my head: it'd be quite the firestorm if an Investment Group was formed by IEPs and other industry brands to buy out VS.

tenor.gif
 
#lastyeardontcare :p
I'm only half kidding since my kids will still be involved in coaching and college cheer. It will be interesting to see - I agree that this will be a sale of segments. It may work to the current customers' advantage and perhaps there will be enough disruption with the EPs and uniform segments to have new and/or current independent players gain traction.
 
It's def getting chopped up. Herff Jones hemorrhages cash.


Wildest Scenario that played out in my head: it'd be quite the firestorm if an Investment Group was formed by IEPs and other industry brands to buy out VS.

tenor.gif


My wild scenario was a Fierceboard GoFundMe to buy it out and use our new power and influence to put pressure on USASF to reform and then, afterwards, spliting up the company and destroying the monopoly for good. Haha. Pretty wild.

:wasntme:
 
Imagine how much money Jeff Webb will make from this sale. It'd be convenient for him if he can take the cash he'll make from the sales of the other subsidiaries and use it to buy back Varsity Spirit so that he doesn't have to come out of pocket (if that is possible).

@ScottyB could you explain the Herff Jones situation?
 
Imagine how much money Jeff Webb will make from this sale. It'd be convenient for him if he can take the cash he'll make from the sales of the other subsidiaries and use it to buy back Varsity Spirit so that he doesn't have to come out of pocket (if that is possible).

@ScottyB could you explain the Herff Jones situation?
Unless he bought into Charlesbank or Partners Group as an investor, he won't make any. Maybe a bonus as chairman of the board on the way out.

He (and many others) got paid handsomely when they sold VB from private and employee owned to Private Equity with Charlesbank.

And then as for Herff, they have had trouble adapting to the digital age we live in. As have all the awards type companies. People just don't want grad announcements or yearbooks like they used to do. Plus they had some mismanagement of manufacturing stuff a few years ago that they took a major hit from.
 
Unless he bought into Charlesbank or Partners Group as an investor, he won't make any. Maybe a bonus as chairman of the board on the way out.

He (and many others) got paid handsomely when they sold VB from private and employee owned to Private Equity with Charlesbank.

And then as for Herff, they have had trouble adapting to the digital age we live in. As have all the awards type companies. People just don't want grad announcements or yearbooks like they used to do. Plus they had some mismanagement of manufacturing stuff a few years ago that they took a major hit from.
The drop in demand is understandable; people can store tons of photos more easily nowadays.

What happened? I figured they'd be making bank from selling rings, at least.
 
The drop in demand is understandable; people can store tons of photos more easily nowadays.

What happened? I figured they'd be making bank from selling rings, at least.
They aren't selling gold rings, just shiny metal rings.

Like this NHSCC ring: UCA NHSCC – Team Jewelry: Varsity Spirit Championship Jewelry by Herff Jones
Only $279

For a custom one it maybe goes up to $350. And thats only winning teams that have Herff Jones contracts. That market is crowded with Balfour and Jostens too. Class rings are down too, just isn't a need for students/parents anymore.
 
The drop in demand is understandable; people can store tons of photos more easily nowadays.

What happened? I figured they'd be making bank from selling rings, at least.


Timeline:
June 15, 2011-Varsity Brands and Herff Jones merged
December 15, 2014-Charlesbank Capital Partners acquires Varsity Brands
December 23.2015-Varsity Brands acquires Allgoods, INC (BSN Sports)
November 28, 2017-Moody's Investor Service affirmed Varsity Brands Corporate Family Rating at B2 and their Probability of Default Rating at B2-PD (
December 7, 2017-BSN sports announced that they completed the acquisition of a portion of the assets of Hibbett Team Sales, Inc

Think outside the box. Varsity Brands was aware of the declining yearbook and ring business in 2014 when the merger happened. It's the relationship Herff Jones has with every school and college in America and much of Canada that was valuable.
 
Timeline:
June 15, 2011-Varsity Brands and Herff Jones merged
December 15, 2014-Charlesbank Capital Partners acquires Varsity Brands
December 23.2015-Varsity Brands acquires Allgoods, INC (BSN Sports)
November 28, 2017-Moody's Investor Service affirmed Varsity Brands Corporate Family Rating at B2 and their Probability of Default Rating at B2-PD (
December 7, 2017-BSN sports announced that they completed the acquisition of a portion of the assets of Hibbett Team Sales, Inc

Think outside the box. Varsity Brands was aware of the declining yearbook and ring business in 2014 when the merger happened. It's the relationship Herff Jones has with every school and college in America and much of Canada that was valuable.
Totally was the relationship. That is how Varsity is keeping HJ going. And was HJ's plan from the start. They swung for the fences to buy VSC in 2012 as kind of a last chance save for themselves because then they put Jeff in charge and he got BSN and then put it under the VB umbrella, then sold it. HJ factory workers that had been there 30 years got paid millions in the buy out. Was awesome to see some wins for those workers.

The idea to use the HJ school data (and varsity and BSN's) is how they push the Impact program. They find schools that have 1 or 2 services already and get a deal going to involve the 3rd (or 4th) to get more business flowing between the three companies. Districts are where they make the big bucks deals I've heard.
 
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