Investment firm Seider Equity Partners collaborated with the Major League Baseball to acquire its Rawlings sporting goods business sold by Newell Brands Inc. on Tuesday for $395 million. As a part of Newell Brands's strategic plans to trim its portfolio and boost its operations, the New Jersey-based global consumer goods company is pleased to place Rawlings for sale at an "attractive multiple," Pilot Online reported. The league becomes the main investor for Rawlings.

Sale close within two months

The transaction is expected to use after-tax proceeds of the sales (about $340 million) of the manufacturer and marketer of sporting goods to reduce debt and repurchase shares, according to a release from Business Wire.

Sporting goods firm Rawlings, which founded in 1887 and now manufactures sports equipment, including baseballs and gloves, has a total of $330 million in annual sales for the fiscal year 2017.

"Rawlings is an iconic brand and Seider Equity Partners, in partnership with MLB, will identify new opportunities for this brand and for the company's employees," Newell Chief Executive Michael Polk said in a release. "This transaction is a pivotal step in our company's transformation to become a more focused, forward-facing consumer goods company with tremendous opportunities." The deal for a sale is believed to close within 30 to 45 days.

Brands acquisition for sale

Last month, plastics packaging unit Waddington Group, which produces plastic packaging containers for the food industry, was being sold by Newell to Novolex Inc.

for $2.3 billion.

Two years ago, Newell acquired the U.S. consumer product company, Jarden Corp., in a deal worth $15 billion. In the years after the agreement for a sale was completed by both parties, Nasdaq reported that Newell missed sales expectations and lost market value, which led the company's plans to shed some of the company's industrial and commercial businesses, including Rawlings and hair-styling brand Goody, and close factories.

Prior to creating a new name of the company, Newell Brands, the company was previously known as the Newell Rubbermaid Inc.

MLB's ties with Rawlings

Peter Seidler, who established and owns Los Angeles-based private equity firm Seider Equity Partners, is a managing partner of the San MLB's San Diego Padres, according to Ballpark Digest, the website for ballpark news and coverage of the culture of baseball.

The report also noted that his family members are actively involved with the MLB and Minor League Baseball team ownership as well.

In a statement by Chris Marinak, executive vice president of strategy, technology and innovation for MLB, the league is excited about a new ownership that builds on the Rawlings legacy and provides the most important on-field products to the game of baseball. MLB has named Rawlings as the official baseball supplier and official helmet of the league. The collaboration lasts through 2021.

About 1,200 people are working for St. Louis, Missouri-based Rawlings globally.