BATON ROUGE - Louisiana-based MLB baseball bat maker Marucci Sports has been acquired by a Connecticut-based investment firm for $200 million.
The buyer is Compass Diversified Holdings (CODI), a publicly traded trust that operates like a private equity investment fund. The goal is to penetrate into new markets and increase the firm's presence internationally.
“Leveraging CODI’s deep sector expertise and proven track record of building businesses for the long term, as well as Marucci’s loyal brand following, we believe the company is poised for continued success in the sports equipment space," said Elias Sabo, chief executive officer of Compass Group Diversified Holdings LLC.
Marucci employs 230 across two locations - one in Baton Rouge and another in Lafayette. The company hit around $15 million in adjusted in annuall earnings in December 2019. That's before taxes and depreciation.
More than ten years ago, Marucci launched in a backyard shed with the goal of becoming the number one bat in the big leagues. Since then, the brand has been a disruptor in an otherwise nostalgic industry – overtaking traditional companies and solidifying itself as the high standard.
Marucci’s bats can be customized as well as personalized, with the choice of either maple or ash, as well as length, drop weight, as well as handle, barrel, and label colors. Bats can also be personalized with engraving on the barrel and knob, "just like a pro," the company says.
Marucci produces about 1,200 bats a day, and about 800-900 make it through quality control, according to a recent report on WGBO-TV. It also produces sports apparel, accessories, batting and fielding gloves, and bags and protective gear.
"We hand-sand, we hand-paint. About 16 sets of hands finish every single bat and every person along the way has the ability to throw a bat out if it doesn't match or meet up with the Marucci standard," says co-founder Joe Lawrence.
Founded in 2004 by two former professional baseball players Kurt Ainsworth and Joe Lawrence, and their athletic trainer Jack Marucci, Marucci prided itself on being founded, majority owned, and operated by current and former MLB players. Major league partners include Albert Pujols, Anthony Rizzo, Buster Posey, David Ortiz and Jose Bautista.
Ainsworth, who has served as CEO of Marucci Sports since 2014, is expected to continue in his role. The deal closes in 45 days.
“When we launched Marucci Sports, our goal was to offer all players, regardless of age or level, big-league quality products that they wanted and needed to be successful,” Ainsworth said. “This partnership with CODI represents the beginning of a long-term relationship that recognizes the tremendous efforts and hard work of the Marucci team and demonstrates the high growth potential of our impressive suite of products."
Marucci promotes itself as among the top most-used bats among Big League players.
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