Sports company CFO says he thrives in PE environment

Javier Idrovo is a big fan of working for a private equity-backed firm. The Varsity Brands CFO loves the sense of urgency that comes with working for a PE owner and has big plans for the KKR-owned sports and cheerleading apparel and yearbook company he joined last year. This includes considering a possible IPO.

Idrovo isn’t new to private equity. He spent three years as the CFO of Blue Triton Brands, the former North American bottled water business of Nestle, which was purchased by PE firm One Rock Capital and Metropoulos & Co. He also worked for more than 11 years at candy company Hershey’s, including five years as chief accounting officer.

Prior to starting with Varsity Brands, Idrovo said he was considering joining a publicly traded company. “To me, this sense of urgency, alignment on really getting things done, because we have a limited timeframe, was really the driving force for me to continue in …the private equity world.”

He’s “perfectly fine” knowing he may have to find a new job in three to four years. “That’s part of the excitement, because then you go into the next opportunity.”

Dealing with KKR. Varsity has been sold to PE investors four times, including KKR, in 24 years. Investors have included Leonard Green & Co (2003), Charlesbank Capital Partners (2014), and Bain Capital (2018). KKR scooped up Varsity Brands in 2024 for a reported $4.75 billion.

Many PE firms use the so-called 100-day plan, a strategy designed to align leadership, identify cost savings, and boost value before momentum of a new acquisition fades. Idrovo said KKR didn’t need the 100-day plan because it had a well-thought-out investment thesis. “They actually did a fair amount of homework prior to making the investment, and that homework effectively became our plan.”

Idrovo checks in with KKR every two weeks to give KKR “a direct line of communication” with him and the CEO, Idrova said “It’s more about [KKR] seeking to understand how the business is performing, what’s working, what’s not working, and then how do we continue to drive the business forward,” he said.

The business. Varsity Brands provides sports apparel, cheerleading, and yearbook products to schools, colleges, and youth organizations in the US. It operates through two business units: BSN Sports, a manufacturer and distributor of sports apparel and equipment, and cheerleading giant Varsity Spirit, which provides apparel and running camps, clinics, and competitions for the cheer community.

Varsity reported $2.7 billion in revenue for the 12 months ended Sept. 30, according to a January report from Moody’s Investors Service.

The company is so large that the probability of finding a strategic buyer or another PE investor is “not as high,” Idrovo told CFO Brew. It’s more likely that KKR could seek to take Varsity public, Idrovo said. This is why he has focused on making sure Varsity is compliant with Sarbanes-Oxley. “I would say [an IPO is] more likely than not the path.”

Under the Varsity Brands Ownership Program, employees of Varsity Brands could potentially share in the exit. “[It] is a great thing to align employees with the final outcome.”