New Era To Acquire '47 in Major Sporting Headwear Deal

On Thursday evening, New Era, a leading American sporting headwear brand, announced that it will acquire neighboring hat label ‘47, in a deal that will bring two of the headwear market’s biggest names under one roof.

Under the deal, New Era aims to build a company that generates approximately $2 billion EUR each year, according to sources familiar with the matter via Reuters. Prior to the acquisition, the brand was eyeing an initial public offering, which was expected to be valued at around $5 billion USD. With this latest deal, New Era’s IPO is expected to be much higher.

Both New Era and ‘47 make licensed hats for major American sporting leagues, including the NFL, MLB, NBA, NHL, MLS, NCAA and NASCAR, among others. The former label’s signature 59FIFTY cap launched in 1954, roughly 30 years after Ehrhardt Koch founded the family-led brand in Buffalo, New York. ‘47, which also creates team apparel, got its start in 1947, when twins Arthur and Henry D’Angelo began selling sports merch outside Fenway Park.

“We are pleased to have reached this agreement to acquire ‘47, a company that shares our commitment to making iconic products and delivering premium experiences,” said Christopher H. Koch, chief executive officer of New Era. “We have known and respected the D’Angelo family and the ‘47 team for many years and have tremendous respect for the business they have built.”

With the acquisition, Koch states that the New Era will offer “a breadth of products across both brands and enhance how we serve our customers and partners around the world.” He added, “We will also have opportunities to build on ’47’s strong North American presence internationally in new markets where New Era already has distribution capabilities and a strong customer base.”

Terms of the acquisition were not shared, but the deal will reportedly close by the end of this year, before New Era’s stock market debut.