WinCraft’s product line of novelties includes koozies, towels, magnets, banners, signs and moreWINCRAFT
Fanatics is set to purchase WinCraft, the industry's largest hard goods licensee in a move that accelerates the consolidation within sports licensing, hit hard by the pandemic. WinCraft President & CEO John Killen said the deal will officially close today. WinCraft’s warehouse and manufacturing facilities in Winona, Minn. are included in the deal, which would provide Fanatics with both credibility within one of the few sides of the business in which it has a limited presence, and with domestic manufacturing capabilities. As part of the deal, Killen will be heading up hard goods across the Fanatics portfolio. Killen confirmed that there will be no layoffs as part of the deal. Killen: "Our goal with the sale was permanency and stability in Winona. That’s what we’re getting with Fanatics. We wanted to find a buyer that understood the licensing business and was buying in for a long-term play. We’re sure we’ve found that." Fanatics’ latest acquisition follows a $350M equity sale in August, which established a $6.2B evaluation for the company. "Within just a few years, Fanatics has bought significant apparel licensees, including (jersey/apparel manufacturer) Majestic and (cap manufacturer) Top of the World, so it was just a matter of time until they dipped their toe into hard lines,’’ said longtime NFL licensing exec Gene Goldberg, now heading consultancy G Squared. “They dove in the deep end and came up with the biggest fish, which will make it an interesting year for every other licensed hard-goods company."
FOR THE WIN: WinCraft was founded in 1961 as a business that sold “cheer products” to high schools. It still counts high schools among its customers, and its product line still includes pom poms and megaphones. After Wincraft Chair Dick Pope, who sources said will retire after the acquisition, joined in 1963, WinCraft pursued pro and college sports licenses. The privately held company now has more than 500 employees and sells tens of thousands of items. WinCraft has nearly every major license across sports, and some of the biggest in entertainment, including Disney and Star Wars. WinCraft’s product line of novelties includes pennants, bumper stickers, koozies, towels, magnets, banners and signs. It also became one of the largest licensed mask sports properties licenses amid the pandemic. Wincraft is also known as an industry leader in shipping and logistics, which will be extremely valuable to Fanatics e-commerce efforts. WinCraft has solid relationships across some of the nation’s biggest retailers. Adding WinCraft’s event merchandise expertise to the inroads Fanatics has already made with on-field apparel gives it an even stronger position across sports merchandising.
LOOK TO THE FUTURE: "This should expand Fanatics wholesale business enormously and allow them to really make noise in hard goods,’’ said former MLB Properties President Rick White, who is now the president of the Atlantic League and an industry consultant. “WinCraft management is solid and Dick Pope and John Killen both have tons of goodwill within an industry that has gotten somewhat battered this year, so that will help also." Fanatics’ existing hard-goods capabilities includes its Fanatics Authentic memorabilia division -- built with the acquisition of Dreams, Inc. and, more recently, the assets of Steiner Sports.
