Topps trading cards are suitable for 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 acquisition company that values Topps at $ 1.3 billion.
Former Disney CEO Michael Eisner will remain chairman of Topps. Mudrick Capital and 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 trade on the Nasdaq under the ticker “TOPP.” The New York Times Dealbook was the first to report the deal.
Topps net sales increased 23% to $ 567 million in 2020, a record high for the company. While Topps is best known for its sports trading cards, it has branched out into interactive mobile apps to connect collectors and has recently expanded into intangible tokens, a new kind of digital asset. Ownership of an NFT is recorded on 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 hopped on the NFT cart. Funko, which makes collectible vinyl figures, recently bought an NFT startup to help it navigate the new trend. But executives told Dealbook that the Topps deal was not a result of the recent expansion into NFTs, even though sports-related NFTs have boomed. In late February, Dapper Labs said consumers had already spent more than $ 230 million buying and trading National Basketball Association highlights.
Topps also runs a gift card company called Topps Digital Services, where it partners with companies such as Netflix, Airbnb and Nike. The candy segment includes iconic brands such as Bazooka, Ring Pop and Baby Bottle Pop.
Tune in to CNBC at 8:15 a.m.ET for an interview with Michael Eisner, former Disney CEO and current Topps chairman, and Jason Mudrick, founder and chief investment officer of Mudrick Capital Management.