Varsity Brands, a U.S. apparel company owned by Bain Capital and parent to BSN Sports and Varsity Spirit, is exploring a sale or initial public offering (IPO) that could value the company at more than $6 billion, including debt, sources told Reuters.

Bain Capital, which reportedly acquired Varsity Brands in 2018 for around $2.5 billion, has been interviewing investment banks that could help the private equity firm devise a plan to cash out on its majority stake in Varsity Brands, the sources said.

The sources added that Varsity Brands generates more than $400 million in 12-month earnings before interest, taxes, depreciation, and amortization.

The exploration comes as Varsity Brands announced in early October that it had sold its Herff Jones Graduation Business to Atlas Holdings.

Photo courtesy Varsity Brands