The Wall Street Journal Illustrates Platinum Equity’s Expansive Carve-Out Blueprint

The Wall Street Journal recently highlighted Platinum Equity’s carve-out strategy, in which the firm targets corporate businesses that may no longer fit a parent company’s priorities but can be repositioned for growth under new ownership.

The approach is reflected in Platinum Equity’s recent $5.6 billion joint venture with Nestlé, in which Platinum acquired a 50% stake in Nestlé’s waters and premium beverages business while Nestlé retained the other half. The joint venture has been rebranded as Peranel.

Platinum Equity Co-President Jacob Kotzubei said such structures give sellers a “second bite at the apple” by allowing them to retain an interest in future value creation.

The strategy builds on the firm’s track record with carve-outs such as Vertiv, which Platinum acquired from Emerson and later took public in 2020, and Rehlko, the energy business carved out of Kohler in 2024, and later rebranded Rehlko.

Read the article here.