Lifestyle brand New Era has entered an agreement to acquire premium sports label ‘47 for an undisclosed sum.

Following the acquisition, the combined company is expected to generate approximately $2 billion in annual revenue.

The two brands said they will continue to grow their licensing partnerships with many of the largest global sports leagues and events.

“Through this transaction, we will offer a breadth of products across both brands and enhance how we serve our customers and partners around the world,” said Christopher H Koch, CEO of New Era. 

“We will also have opportunities to build on ’47’s strong North American presence internationally in new markets where New Era already has distribution capabilities and a strong customer base.”

The New Era and ’47 brands will continue to serve consumers independently from each company’s respective headquarters in New York and Massachusetts, with ’47 led by Dominic Farrell.

The transaction is expected to close by the end of this year.