Topps trading books are arranged for a photo in Richmond, Virginia.
Jay Paul | Bloomberg | Getty Images
Topps, best known for its baseball cards and the Bazooka line of candy, has agreed to go public through a merger with Mudrick Capital Acquisition Corporation II, a special-purpose acquisition company that rates Topps at 1.3. billions of dollars.
Former Disney CEO Michael Eisner will remain Topps’ president. Mudrick Capital and the funds and accounts managed by GAMCO Investors and Wells Capital Management are expected to invest another $ 250 million in SPAC.
The transaction is expected to be completed by the end of the second quarter or the beginning of the third quarter. The combined company will be called Topps and will trade on the Nasdaq under the “TOPP” checkbox. The Newbook Times’ Dealbook was the first to report the deal.
Topps’ net sales rose 23% in 2020 to $ 567 million, a record high for the company. While Topps is best known for sports trading cards, it is expanding into interactive mobile applications to connect collectors and has recently expanded into non-fungible chips, a new type of digital asset. The ownership of an NFT is registered on a blockchain, similar to the networks that underlie cryptocurrencies. Each NFT is unique and cannot be duplicated, just like owning an original board or a rare baseball card.
Other companies, from Taco Bell to Atari, also jumped on NFT. Funko, which produces collectible vinyl figurines, recently bought an NFT startup to help it navigate the new trend. But executives told Dealbook that the Topps transaction was not due to its recent expansion into NFTs, although sports-related NFTs have increased. At the end of February, Dapper Labs said consumers had already spent more than $ 230 million buying and trading important moments from the National Basketball Association.
Topps also has a gift card business called Topps Digital Services, where it works with companies such as Netflix, Airbnb and Nike. Its candy segment includes iconic brands such as Bazooka, Ring Pop and Baby Bottle Pop.
Connect to CNBC at 8:15 AM ET for an interview with Michael Eisner, former Disney CEO and current president of Topps, and Jason Mudrick, founder and investment director of Mudrick Capital Management.