AUBURN HILLS, MI - Palace Sports and
Entertainment (PS&E) and Detroit Pistons Basketball Company (DPBC)
owner Karen Davidson today announced a definitive agreement to sell
PS&E, DPBC, and their respective assets -- including the NBA’s
Detroit Pistons, The Palace of Auburn Hills, DTE Energy Music Theatre
and the operating rights to Meadow Brook Music Festival -- to financier Tom Gores and his investment firm, Platinum Equity.
Terms of the agreement, which is still subject to review and approval by the NBA’s Board of Governors, were not disclosed.
"We are pleased to welcome Tom Gores as the new owner of the
Detroit Pistons and Palace Sports and Entertainment," said Karen
Davidson. "Just as my late husband, Bill Davidson, was the face of the
Pistons, I am confident that Tom will bring the same energy, dedication
and love to this organization. I look forward to seeing Tom follow in
Bill’s footsteps, and carry on his legacy."
"From the Pistons players, coaches and front office, who
helped bring home three world championships, to the management and staff
at the Palace, DTE and Meadow Brook, who earned us international
recognition, we look forward to facilitating a smooth transition under
Tom and achieving even greater success in the future."
Mr. Gores is the Chairman and CEO of Platinum Equity, a
global investment firm whose holdings include 34 portfolio companies in
such diverse business sectors as technology, media and entertainment,
industrials, metals processing, automotive supply, and distribution and
logistics.
The firm specializes in navigating complex business
environments, and Mr. Gores said he sees great potential for
revitalizing PS&E and the Pistons franchise.
"I am very proud to have this opportunity to be part of such a
tremendous organization," Mr. Gores said. "I know it’s been a long
process and I appreciate the patience and support of the Detroit
community. I have been impressed with the Davidson family and the way it
has protected and built such a storied franchise. I grew up here, I am
glad to be back, and I am very excited about all the possibilities
looking forward."
Comerica Bank, a longtime financing partner of Platinum
Equity, will provide financing on the transaction. The transaction is
expected to close by June 30, pending league approval and normal closing
conditions.
Citi Private Bank’s Sports Advisory group acted as sell-side advisor on the transaction.
Outside of these statements, all parties have agreed to
continue to abide by the terms of their confidentiality agreement
pending final close of the transaction.
For a press kit on Tom Gores and Platinum Equity visit: www.platinumequity.com/press-center
Contacts:
For Karen Davidson:
Michael Layne
Marx Layne & Co.
248.320.6202
Email Contact
For Tom Gores and Platinum Equity:
Mark Barnhill
Platinum Equity
310.712.1850
Email Contact
