Herschend Family Entertainment buys Harlem Globetrotters

Last edited 8:43 a.m., Oct. 2, 2013

Herschend Family Entertainment Corp. has acquired exhibition basketball team the Harlem Globetrotters.

With the purchase for an undisclosed amount from eight-year owner Shamrock Capital Advisors, Harlem Globetrotters International Inc. becomes a wholly owned subsidiary of Norcross, Ga.-based HFE, the parent company of Silver Dollar City and various other themed attractions, according to a news release. The asking price was reportedly between $50 million and $100 million when the team was placed on the market in June, according to Reuters.

"This acquisition helps HFE diversify into a new but complementary business," President and CEO Joel Manby said in the release. "Becoming the new owners of this legendary team is a natural step as HFE continues to develop wholesome, immersive entertainment that parents can trust."

HFE utilized Genesis Capital LLC as its investment banker for the deal and McKenna Long & Aldridge LLP as legal counsel. Piper Jaffray & Co. served as investment banker for the Globetrotters, while Kirkland & Ellis LLP provided legal counsel.

The Globetrotters perform shows in front of more than 3 million fans each year in about 30 countries, according to the release. The team's active player roster and 90 staff, players and coaches are slated to remain the same under HFE ownership.

The team, which mixes comedy with athletic feats, was founded in 1926 as the Savoy Big Five. Since, the team has played more than 25,000 games in six contents and 122 countries and territories.

The selling company, Shamrock, is a Los Angeles-based private equity firm with some $700 million of capital under management. The firm was originally founded as the family investment company of Roy E. Disney - nephew of Walt Disney - in 1978, according to the release.