New Era Cap LLC, a major supplier of sports league headwear in the U.S., is reportedly preparing for an initial public offering (IPO) in New York. The company, known for its caps affiliated with the NFL, MLB, and NBA, has invited investment banks and law firms to pitch for roles in its stock market debut. New Era is valued at an estimated $4 billion to $5 billion and is aiming to go public in 2024. It is currently controlled by its founding family and private equity firm ACON Investments, with minority stakes held by MLB, the NFL, and the NBA. The company’s earnings are projected to reach or exceed $300 million in 2023.
Kevin R. Wilson, EVP and CFO of New Era, stated that the company is always considering financial alternatives for future growth but has no specific plans to share at this time. A spokesperson for ACON Investments mentioned that strategic alternatives are continually evaluated for New Era but did not comment directly on the IPO plans.
New Era was established in 1920 by Ehrhardt Koch in Buffalo, New York, and initially focused on making men’s fitted caps. The company is currently led by Chris Koch and is known for its flagship 59FIFTY cap, which is a popular choice among celebrities. Its apparel products are sold in over 1,000 retail stores worldwide.
The IPO market is experiencing increased activity after a prolonged dry period. New Era joins other companies, such as Arm Holdings, Instacart, and Klaviyo, in working on multibillion-dollar offerings expected later this month.
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