A Hanover-area apparel firm has agreed to merge with a rival and create a new company backed by a private equity fund.
The merger unites Legacy Athletic, based in Penn Township, York County, and League Collegiate Outfitters, based in Bridgeport, which is outside Philadelphia. Both companies make college-themed apparel and accessories, as well as other items, and together employ nearly 1,000 people.
They will operate their brands under a new parent company, known as L2 Brands LLC, which was given an infusion of capital from Dominus Capital, a private equity fund based in New York City. Dominus previously had invested in League Collegiate in 2016.
Terms of the transaction were not disclosed.
“We are excited to unify two of the leading brands in the college, destination and corporate end markets, which should allow L2 Brands to become a sizable and vertically integrated competitor offering a full line of high-quality products to its loyal customer base across multiple sales channels,” Dominus partner Ashish Rughwani said in a statement. “Importantly, we will continue to empower the company to serve its communities and stakeholders through its numerous corporate social responsibility initiatives.”
Legacy’s co-founder, president and CEO, Paige Wingert, will be CEO of L2 Brands, overseeing strategic direction and operations, according to a press release. League’s CEO, Pete Waldron, will be president, leading the new company’s sales and business development.
Both companies are known for their college-branded caps, sweatshirts and other apparel. But Legacy also makes items for resort and business customers.
“The ability to join forces with League is a very unique opportunity to achieve synergies and create solutions for our customers as well as introduce League’s looks outside the college realm, where Legacy has had much success the past 10 years,” Wingert said in a statement. “It is an exciting opportunity, and we are very enthusiastic for the new combined team without forgetting our shared roots and family-like culture at both companies that got us to this point in our journey.”
Founded in 1992, Legacy employs 200 people at its facility in Penn Township. League employs 175 in Bridgeport and another 600 at a factory in El Salvador, where the company has won recognition for employing workers with disabilities and in gang rehabilitation programs, as well as for other socially responsible efforts.
Both companies are members of the Fair Labor Association, which calls on companies to voluntarily meet the same set of labor standards wherever their products are made.
Dominus describes itself as an operationally focused private equity firm that invests in middle-market companies. Its portfolio includes: Balboa Water Group, which makes components for hot tubs, jacuzzis and whirlpool baths; MW Industries Inc., which makes specialty springs and fasteners; and Nevco Sports, which makes sports scoreboards, LED video boards, electronic display signs and related products.