Sports apparel retailer Fanatics Inc. has reached a deal to acquire the licensed sports group business of VF Corp., which includes Majestic, the current maker of on-field apparel for Major League Baseball.
The transaction is expected to close in the second quarter of this year, and terms of the agreement were not disclosed in a news release from both companies.
The deal was not unexpected because of recent synergies. Last December, Under Armour and Major League Baseball announced a 10-year agreement, beginning in 2020, that calls for Under Armour to manufacture all on-field apparel for big league teams. Majestic and Nike hold those current rights, running through 2019. But with Majestic’s lame-duck status, there was speculation Majestic could be sold.
And Fanatics earlier this year announced an agreement with Under Armour to produce UA-branded on-field jerseys starting in 2020. Under terms of that agreement—financial terms were not disclosed—beginning in the 2020 MLB season, Under Armour will be the exclusive MLB provider of all on-field uniform components including jerseys featuring prominent Under Armour branding, baselayer, game-day outerwear, and year-round training apparel.
Fanatics, meanwhile, will manufacture and sell the Under Armour MLB merchandise that will be sold to fans.