Topps trading cards are organized to take a photo in Richmond, Virginia.
Jay Paul | Bloomberg | Getty Images
Topps, best known for its baseball cards and Bazooka candy line, has agreed to go public through a merger with Mudrick Capital Acquisition Corporation II, a special-purpose acquisition company, which values Topps at $ 1.3 billion. .
Former Disney CEO Michael Eisner will continue to be President of Topps. Mudrick Capital and the funds and accounts managed by GAMCO Investors and Wells Capital Management are expected to invest an additional $ 250 million in the SPAC.
The deal is expected to close in the late second or early third quarter. The combined company will be called Topps and will operate on the Nasdaq with the “TOPP” ticker. The New York 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 its sports trading cards, it splits into interactive mobile apps to connect collectors and has recently expanded into non-expendable tokens, a new type of digital asset. The ownership of an NFT is recorded in a blockchain, similar to the networks that support cryptocurrencies. Each NFT is unique and cannot be duplicated, just like owning an original painting or a rare baseball card.
Other companies, ranging from Taco Bell to Atari, have also jumped on the NFT bandwagon. Funko, which makes collectible vinyl figurines, recently bought an NFT startup to help it navigate the new trend. But executives told Dealbook that the Topps deal was not due to its recent expansion into NFT, although sport-related NFTs have been on the rise. In late February, Dapper Labs said consumers had already spent more than $ 230 million buying and selling National Basketball Association highlights.
Topps also has a gift card business called Topps Digital Services, where he works with companies such as Netflix, Airbnb and Nike. Its candy segment includes iconic brands such as Bazooka, Ring Pop and Baby Bottle Pop.
Tune in to CNBC at 8:15 am ET for an interview with Michael Eisner, former CEO of Disney and current president of Topps, and Jason Mudrick, founder and investment director of Mudrick Capital Management.