Seidler Equity Partners is exploring the sale of its stake in Rawlings Sporting Goods, the 139-year-old maker of baseball gloves, bats, and balls. This potential sale could lead Major League Baseball (MLB) to become the majority owner of Rawlings, as MLB currently holds a minority stake and is a co-investor alongside Seidler. Rawlings has been the exclusive supplier of the official game balls for MLB since 1977, and their contract extends through 2021.
Rawlings was acquired by a fund managed by Seidler Equity Partners, with MLB co-investing, in June 2018 for approximately $395 million from Newell Brands. Newell Brands sold Rawlings as part of its Accelerated Transformation Plan, designed to create a simpler and more focused portfolio of leading brands. Rawlings' net sales in 2017 were approximately $330 million.
MLB's initial investment in Rawlings was driven by its interest in having more direct involvement and oversight over the production of the official game ball, which is considered crucial to the integrity of the game. Peter Seidler, a founding partner of Seidler Equity and managing partner of the San Diego Padres, is also a member of MLB's Ownership and Investment Committees.
The sale is expected to close within 30 to 45 days, subject to customary closing conditions, including regulatory approval. Morgan Stanley advised Newell Brands on the original transaction, while Bank of America Merrill Lynch acted as financial advisor to Seidler Equity Partners. The after-tax proceeds from the initial sale for Newell Brands were estimated at $340 million, intended for deleveraging and share repurchase.
