Fanatics Inc bets on Italian soccer with EPI deal (updated)

EPI (Holdings)

05/04/2023 09:06

(Adds companies' announcement, Quadrivio comment; paragraphs
2,8)
       LONDON, April 5 (Reuters) - U.S. sports merchandise
retailer Fanatics Inc will run the official online stores of
Italy's national soccer team and seven Serie A teams, through
its acquisition of sports e-commerce firm EPI, its first foray
into the Italian market.
    The deal, announced by the companies on Wednesday, will also
see Fanatics take over the running of in-stadium stores for AC
Milan, Inter Milan, Fiorentina, and Bologna.
    Fanatics makes and sells licensed merchandise for the
National Football League, National Hockey League, and Major
League Baseball in the U.S. and has been growing in Britain and
Europe since buying British sports retailer Kitbag in 2016. 
    "Serie A has so many successful teams that I think are
essential to have as part of a global partner roster," said Doug
Mack, chief executive of Fanatics Commerce and vice-chairman of
Fanatics.
    EPI, previously owned by Italian private equity firm
Quadrivio Group's "Industry 4.0" fund, runs the official online
stores of AC Milan, Atalanta, Bologna, Fiorentina, Inter Milan,
Juventus, Lazio, and Italy's national soccer federation FIGC. 
    The deal will make it easier for fans outside Italy to buy
official merchandise, Mack said.
    Fanatics did not give a value for the deal.
    Alessandro Binello, chief executive of Quadrivio Group, said
the sale of EPI confirmed the potential for Italian small and
medium enterprises to develop on an international scale. 
    Fanatics, a private company backed by investors including
Softbank, was valued at $31 billion in its most recent funding
round in December 2022. The company says its merchandise
business will bring in sales of $6 billion this year. 
    The acquisition comes as Italian soccer enjoys a resurgence:
Inter Milan, AC Milan, and Napoli are all in the Champions
League quarter-finals, the first time since 2005-2006 that three
Italian clubs have made it that far. 
    As part of the deal, EPI's name will change to Fanatics
Italy and all its 150 employees will join the group. 

 (Reporting by Helen Reid;
Editing by Toby Davis and Clarence Fernandez)
 ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))