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Platinum Equity Acquires Majority Interest in Global Apparel Company Hop Lun

Platinum Equity Acquires Majority Interest in Global Apparel Company Hop Lun

Home / News / Platinum Equity Acquires Majority Interest In Global Apparel Company Hop Lun

Investment in Hong Kong-based undergarment and swimwear company led by Platinum’s Singapore investment teamLOS ANGELES and SINGAPORE, September 30, 2022 — Platinum Equity announced today that the acquisition of a controlling stake in international apparel company Hop Lun from company founder Erik Ryd has been completed. Financial terms were not disclosed.Founded by Mr. Ryd in 1992 and headquartered in Hong Kong, Hop Lun is one of the world’s largest designers and manufacturers of undergarments and swimwear sold in the US, UK and EU.“We have gotten to know Erik very well over the past several years and have great respect for him as a person and as an entrepreneur,” said Jacob Kotzubei, the partner in Platinum Equity’s Los Angeles headquarters who oversees the firm’s Singapore-based team. “He is an inspirational leader who has instilled in Hop Lun a culture of trust, transparency, reliability and creativity that serves as the foundation for the company’s success.”The Hop Lun investment was led by Platinum Equity’s Singapore office.“There are many founder or family-owned businesses in Asia facing succession or other issues that need a partner who can not only provide capital, but also operational expertise,” added Mr. Kotzubei. “They are looking to create additional value while also protecting their legacy and setting up their business for a new stage of growth. We have a lot of experience in those situations and are excited to work alongside Erik and the Hop Lun team on the next step in their journey.”Mr. Ryd retained a significant stake in Hop Lun and will continue to help lead the business going forward.“I am proud of the business we have built over the last 30 years and am confident Platinum will help accelerate our success,” said Mr. Ryd. “Platinum’s financial and operational resources will be tremendously helpful, but more importantly their team shares our values and our vision for the future. I believe we are a perfect fit. Our teams have been hard at work collaborating on transformation initiatives and we expect a seamless and productive transition.” We have gotten to know Erik very well over the past several years and have great respect for him as a person and as an entrepreneur. He is an inspirational leader who has instilled in Hop Lun a culture of trust, transparency, reliability and creativity that serves as the foundation for the company’s success. Jacob Kotzubei, Partner, Platinum Equity Hop Lun employs more than 30,000 people and has manufacturing operations in Bangladesh, China, Ethiopia and Indonesia. The company produces products for many of the world’s largest global retailers as well as for its own in-house brands.“Hop Lun is an ideal platform with multiple ways to evolve and expand,” said Matthew Louie, managing director at Platinum Equity. “We expect to accelerate investments in growing the company, both organically and through strategic M&A.”“Hop Lun also has made an impressive commitment to ESG and is increasingly looking at new ways to partner with brands to bring more sustainable products to market,” added Mr. Louie. “The innovative use of sustainable fabrics and post-consumer recyclable materials will be an important priority for us going forward.”BDA Partners and Goldman Sachs & Co. served as financial advisors to Hop Lun on the sale to Platinum Equity. Mayer Brown LLP served as Hop Lun’s legal counsel.Latham & Watkins LLP provided legal counsel and Kirkland & Ellis LLP provided debt financing counsel to Platinum Equity on the acquisition of Hop Lun.For more discussion from the deal team about the Hop Lun investment: “How acquisition of apparel company Hop Lun is an example of Platinum Equity’s ability to ‘win over’ founder-owned companies”About Platinum EquityFounded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $36 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 27 years Platinum Equity has completed more than 350 acquisitions.

How acquisition of apparel company Hop Lun is an example of Platinum Equity’s ability to ‘win over’ founder-owned companies

How acquisition of apparel company Hop Lun is an example of Platinum Equity’s ability to ‘win over’ founder-owned companies

Home / News / How Acquisition Of Apparel Company Hop Lun Is An Example Of Platinum Equitys Ability To Win Over Founder Owned Companies

Platinum Equity’s decision to acquire a majority interest in Hop Lun, a global apparel company, is noteworthy for many reasons.Hop Lun is Platinum Equity’s fourth platform deal and first foray into the apparel business in Asia.It’s currently the fourth apparel company in Platinum Equity’s portfolio.The acquisition is also another instance of Platinum Equity building a solid working relationship with a founder-owned business. Current Platinum Equity portfolio companies Game Taco, Mad Engine, Arrow International, L&R Distributors and Centerfield were acquired from company founders.“Hop Lun is a really great example of Platinum's tenacity and our ability to win over sellers in terms of just being a firm that really values the human side of our business equation,” Platinum Equity Partner Jacob Kotzubei said recently. “We’re able to present a softer, gentler firm.”Founded by Erik Ryd in 1992 and headquartered in Hong Kong, Hop Lun is one of the world's notable designers and manufacturers of undergarments and swimwear in the U.S. and Europe. The Hop Lun investment is led by Platinum Equity's Singapore office, which Kotzubei oversees.“There are many founder or family-owned businesses in Asia facing succession or other issues that need a partner who can not only provide capital, but also operational expertise,” said Kotzubei. “They are looking to create additional value while also protecting their legacy and setting up their business for a new stage of growth. We have a lot of experience in those situations and are excited to work alongside Erik and the Hop Lun team on the next step in their journey.”Ryd will retain a significant stake in Hop Lun and will continue to help lead the business.“I am proud of everything we have built over the last three decades and I am confident Platinum is the perfect partner for our next phase of growth,” Ryd said. “Platinum's operations expertise is well suited to help us navigate the increasing complexity of the apparel business and take advantage of the sector's continued consolidation.”Kotzubei, Platinum Equity Managing Director Matt Louie and Senior Vice President Tae Ho Whang were asked recently for further thoughts on the acquisition.(Answers have been edited for length and clarity).Q: What was the key factor in landing this deal during a year of diminished M&A activity?Kotzubei: Erik is somebody that we got to know pre-COVID. We talked about a partnership before COVID hit. COVID is something that has had a big impact on his business because he relies on a large number of employees to make products, and COVID impacted factories and the ability for people to come to work.Kotzubei: After an initial acquisition attempt, we stayed in touch. Erik was very transparent with us, and we watched his business as it developed. We saw him adapt and make changes and really share the cultural values and the communication values that we have. And when it came time, as we were coming out of COVID and he began to reconsider selling his business, we were at the very top of his list. It was more than about how many dollars he was going to get. That was important, but it wasn't the only variable.Q: What is Hop Lun’s reputation in the apparel industry?Whang: Hop Lun is one of the world's largest original design manufacturers of intimate apparel. In a very fragmented market, they're a top performer in terms of volume for bra solutions. They also stand out as being unique for their ability to fulfill solutions for all types of customers – from leading supermarket/hypermarkets, specialty and general fashion retailers, digitally centered brands. This is a testament to Hop Lun’s breadth of expertise in design, manufacturing and overall supply chain management that is hard to replicate.Q: How was the deal sourced?Whang: There was a prior sales process led by Goldman Sachs several years ago, but I would say what was unique about that was even prior to the process, Erik had met us in the U.S. and in Asia, laying the foundation to cultivate what is now a three-year relationship. Both L.A. and Singapore deal team members engaged on the deal, and our relationship developed to a point that we were able to closely track the business and exchange ideas with Erik on a monthly basis for all of 2020 and 2021.Whang: The sale process launched in February; first-round bids were in by March. Then Russia invaded Ukraine. That created a lot of anxiety around inflation and there still is ongoing fears about a slowdown in the economy. That significantly reduced the playing field. I firmly believe the differentiator was how we saw this business and Erik persevering through that challenging environment the past 3 years - not just with the pandemic and the shutdowns - but really in that post-COVID environment, they continued to manage costs well, continued to grow revenue and transform the business to be more resilient.Q: How does this transaction help us with future M&A opportunities?Louie: There are so many family-driven businesses that are prevalent in Asia that may have succession issues over time. I think the word is really getting out to folks in the Asian region that Platinum can bring a lot to the table around professionalization, around taking the business to the next level. Erik really embraced Platinum’s approach to our operational improvement and M&A, and when that happens, that's a recipe for success. There are a number of families in Asia that may think they need capital, but that's all they need, and they really don't want help. That's not the right deal for us because we pride ourselves on what we can be. We’re more than just capital.Q: What are key parts of the investment thesis?Whang: A significant large part of this business goes to supermarkets, and it’s a product category we know is resilient. Beyond that, the management has also proven to be able to grow and come back stronger after dips and there’s a long history of just delivering above industry growth. As we think about the path forward, we think that in an industry which remains fragmented, it will eventually favor scaled players and give Hop Lun an opportunity to accelerate market share in the industry with our expertise.Q: Any synergies with similar companies (Elevate Textiles, Mad Engine, SVP Worldwide) in our portfolio?Whang: We've gotten some referrals from Mad Engine about opportunities we should be looking at, but at its core and where we're going to do well, is this business is an original design manufacturer. With the right M&A on the brand side, I think this business could be exciting. Back to Mad Engine, while Erik was in L.A. during the diligence process, he had a chance to visit Mad Engine in (Orange County, Calif) to exchange ideas. It was another facet of our value proposition to Eric. It helped him conceptualize how he could go bigger in the U.S.Whang: Elevate Textiles was very helpful during due diligence. There's a small, but consistent, upstream relationship. I think we're trying to see if we can widen that. It shows the attributes of Elevate; its management was aware of this business.Q: Does Hop Lun have a compelling ESG story?Whang: ESG is critical. And it is a major concern throughout the apparel industry. Top brands can’t afford bad press or accidents around worker conditions, living wages or bad governance. At the same time, many of these brands are not in the business of manufacturing so they have a growing reliance on the likes of Hop Lun to ensure they are being responsible throughout the supply chain. One of the big focal points during diligence was the impact of fast fashion on retail. While it will have potential impacts on the industry’s demand side over time, we also believe that this will have a strong impact to the supply side and with this evolving theme, scaled, responsible suppliers such as Hop Lun will emerge as more mission critical to its customers throughout our investment period.Louie: One of the key things from ESG is the use of sustainable fabrics. Hop Lun is increasingly exploring, collaborating with the brand owners to discover ways to use more sustainable products. We must look at brands or add-ons that have an innovative approach in the use of sustainable fabrics, in post-consumer recyclable materials.

How commitment and resources drive Platinum Equity’s European momentum

How commitment and resources drive Platinum Equity’s European momentum

Home / News / How Commitment And Resources Drive Platinum Equitys European Momentum

The ability to execute European-headquartered global, pan-European, and domestic complex deals speaks to Platinum Equity’s commitment and deployment of resources in Europe.With the early 2022 acquisition of Leaders Romans Group, a UK-based property service firm, Platinum’s European portfolio includes: Spain-headquartered global environmental services leader Urbaser and global frozen seafood company Iberconsa, European vacation rentals group Awaze, European private label sweet biscuits manufacturer Biscuit International, Italy-based global marine contractor De Wave Group and global wine distributor Fantini Group Vini.Platinum Equity Partner Louis Samson highlighted the firm’s European focus after the $4.2 billion agreement to acquire Urbaser was announced last year.“Urbaser is another important addition to Platinum’s growing portfolio of operating companies headquartered in Spain and is a direct reflection of our commitment to investing in the European market,” Samson said. “We have had great success delivering divestiture solutions to sellers in Europe and creating value across a wide range of industries.”A commitment that started 20 years ago has grown to thirty professionals with European headquarters based in London. There are more than 60,000 portfolio employees across the eight active investments. Since 2002, there have been 56 European transactions combining for a valuation of more than $17 billion. Since 2021, Platinum has completed nearly $6 billion in total transactions in Europe.Platinum Equity executives were asked recently to give more insight into the firm’s operations-focused strategy in an increasingly competitive market.(Answers have been edited for length and clarity).Samson on Platinum’s European strategy: “We've really supercharged the effort in the last five to seven years. We’ve built the foundation of a team that can grow to become what we've built in North America. It’s an approach that's a little less opportunistic and more deliberate with a foundation that can take us to the degree of velocity and importance in the market that we've reached in North America. We've reached a degree of relevance and have very high ambitions for the European office.”Managing Director Igor Chacartegui on Madrid-based Urbaser acquisition: “Being there, present in Spain, was vital to building trust because the CFO of (seller) China Tianying was sent to Spain for a three-month period to deliver this deal. (Metaphorically) holding hands with them, and with the company, we understand was critical for them to choose us as a partner to go into exclusivity, essentially six weeks before we got a deal signed.”  Principal Ramzi Itani on culture and understanding: “To be successful in the industry that we work in, you must be able to address cultural nuance. To be really close to the seller, to be close to the management team, you need to be able to converse in their own language. As we've built the team here, we've filled in some of the gaps that we had with executives that can speak French or Spanish or Italian, and I think that's really helped us be more successful at that final point of getting a deal done.”Managing Director Malik Vorderwuelbecke on firm’s evolution: “Over the past decade, Platinum didn't sit still, we developed and evolved the skillset to tackle ever more complex deals, and more comprehensive transformations. If you look at the deals we do today vs. the deals we did back then, we have shifted from looking at smaller opportunities, maybe more cost-focused opportunities, to looking at market-leading businesses with excellent management teams, very defensible profiles.”Samson on what’s next: “Our aspirations in Europe really are to replicate our North American business. We're building our business to be viewed as a reliable partner.”

Why Platinum Equity likes ‘high velocity M&A’ opportunity in UK property services market

Why Platinum Equity likes ‘high velocity M&A’ opportunity in UK property services market

Home / News / Why Platinum Equity Likes High Velocity Ma Opportunity In Uk Property Services Market 2

Acquisition of Leaders Romans Group amplifies European momentum because of its place in the UK property marketIn early March, residential property letting company Leaders Romans Group announced the acquisition of Northfields Holdings, the first acquisition for United Kingdom-based LRG under the Platinum Equity umbrella.Since that acquisition, LRG has acquired SPL Property Management, GSC Estate Management, and Hose Rhodes Dickson.The M&A activity is a continuation of the company’s “high-velocity M&A program,” which was cited by Platinum Equity Partner Louis Samson, who oversees the firm’s European operations, when the LRG acquisition was announced in January.“LRG plays an important role in the UK property market and has grown steadily for decades,” Samson said. “We have spent a lot of time getting close to this sector and are excited about the opportunity to invest in it through the LRG platform, which has a diversified and resilient recurring revenue base. The LRG management team has built an impressive business with a high-velocity M&A program, and we look forward to working with them to take it to the next level. The company will also benefit from Platinum's operations capabilities and our expertise in digital transformation in particular.”Aside from the continuation of the robust M&A program, the acquisition of LRG represents a new sector for Platinum’s European investment team. Also specializing in sales and associated professional services, the group has a nationwide network of branches and offices and manages more than 62,000 properties across the UK. LRG was an acquisition by Platinum’s Small Cap Fund, and it continues Platinum’s European momentum.Platinum’s European portfolio also includes: Spain-headquartered global environmental services leader Urbaser, global frozen seafood company Iberconsa, European vacation rentals group Awaze, European private label sweet biscuits manufacturer Biscuit International, Italy-based global marine contractor De Wave Group and global wine distributor Fantini Group Vini.The origin of the LRG investment traces back to Platinum’s creativity in the early days of the pandemic when M&A activity slowed.Under the direction of Samson, the European deal team started looking at new sectors for potential M&A. Through that exercise, the team realized the potential of pursuing deals in the property services space, which led to the LRG acquisition.“LRG is a strong platform with a healthy pipeline of add-on opportunities and is well positioned as a buyer of choice in its sector,” Platinum Equity Managing Director Fernando Goni said. “Platinum's financial and transactional support can accelerate those efforts and help the company continue growing through branch acquisitions and larger, strategic M&A opportunities. We look forward to working with the management team to continue supporting the company's long-term ambitions.”Goni and Platinum Equity Vice President Filippo Rossi shared more details about LRG recently. Q: Why was this a Platinum deal?Goni:  One thing that really attracted us to this business is the property management side. The UK is a slightly different market environment than the U.S. in the sense that many rental flats and homes in the UK are individually owned. It’s the second home, and they're rented out to create yearly annuity income. It's an important investment for such owners, more than equities or bonds or any other forms of investments. In the U.S., you have larger corporations owning many homes and renting them out. In the UK, it's mostly middle class.Q: What is the immediate ops plan?Rossi: There is an obvious opportunity there by keeping the M&A machine running. It can be running and acquiring small property agencies that manage up to 100 properties, and it can be also roll-up slightly larger companies that might manage 1,000, or 2,000 properties, but still trade at low multiples.Q: Why the property management side?Rossi: The key elements of this business that attracted us are the stability of this business model, the annuity-based income that they collect from the properties they manage, and the very diversified nature of the customer base. They also manage some ancillary services that are very attractive, such as related insurance products and other property management services.Q: What are downside protections?Goni: If you lose your No. 1 property owner, who might own around ten properties, you lose an immaterial amount of your profits, so you are protected on the customer side. The market environment in the UK is one where rents haven’t gone down for the last 30 years, except for a time during the global financial crisis. With the current macro environment continuing to fluctuate, you have a pretty good guard against inflation because rent has been growing more than inflation in the UK over the last 30 years. That increases the stability of this business model, creating a highly diversified, stable, annuity -like income.Q: What are the opportunities?Rossi: In the UK, this market is very fragmented with many small business owners that manage many properties. As those smaller business owners look for exits, LRG can be an attractive source of liquidity. LRG is one of the main players in a very disaggregated market. It is an extremely attractive opportunity to roll up smaller companies.Q: It is only a UK story?Goni: It's difficult to go overseas, even to compare to Europe, because the markets are different. In addition, the regulations around managing property in terms of the gas, electricity, water etc. are different country by country.Q: Any other aspect of the ops plan you can share?Rossi: We have a level of experience with businesses that have also undergone a similar digital enhancement, but this business obviously will never go fully digital, because property management has an element of proximity, needing to be close to the tenants and the property owners to fix small issues like calling the plumber or making sure the electric system stays current with the latest regulations.

AGM-LPAC

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2022 Limited Partners Annual Meeting November 9 - 10, 2022 RSVP RSVP [contact-form-7 id="13269" title="AGM-LPAC Page Form"] Welcome Dear Investor, On behalf of our senior leadership team, I am pleased to invite you to Platinum Equity’s 2022 Annual Meeting. The event will begin with a meeting of the LP Advisory Committee at the Beverly Hills Hotel, followed by a dinner reception the evening of November 9. The main session will take place the following day at the Beverly Hills Hotel on November 10. Please RSVP below and review the additional information including recommended area hotels and contact information for use in confirming your participation. Should you have any questions, issues accessing the website or if you would prefer to RSVP by phone or email, please contact Olivia Kim at +1.310.228.9620 or okim@platinumequity.com. We hope to see you here in November. Warm regards, Mark BarnhillPartner Schedule of Events Joint LP Advisory Committee Meeting Wednesday, November 9 at 3:00pm Sunset Room Beverly Hills Hotel 9641 Sunset Blvd, Beverly Hills, CA 90210 All-Investor Welcome Dinner Wednesday, November 9 at 5:00pm Cecconi's West Hollywood 8764 Melrose Ave, West Hollywood, CA 90069 Recommended Attire: Business Casual Limited Partners Annual Meeting Thursday, November 10 at 8:00am Rodeo Ballroom Beverly Hills Hotel 9641 Sunset Blvd, Beverly Hills, CA 90210 Recommended Attire: Business (tie optional) Thursday’s schedule will include a special luncheon speaker: Former California Gov. Arnold Schwarzenegger Meeting Agenda Welcome and Opening Remarks Summary Year in Review Market Overview Performance Overview Portfolio Operations Update ESG Discussion Questions and Answers Closing Remarks Meeting Concludes Item #1 Hotel Accommodations We have selected these hotels for their close proximity to the meeting location. Each is approximately 30 minutes from Los Angeles International Airport (LAX). It is recommended that you book your room by October 18, 2022 to ensure the best rate and availability. Rates and availability are subject to change until hotel reservation has been confirmed. The rates are based upon single occupancy and do not include taxes and/or surcharges/fees. Transportation and lodging expenses for LP Advisory Committee members are treated as partnership expenses and will be fully reimbursed to the extent your institution’s policies permit it. Beverly Hills Hotel (meeting site) Standard: $695/night Maybourne Superior King Room: $365/night Maybourne King Room: $500/night Sixty Hotel Queen Superior: $341/night King Deluxe: $345/night L'Ermitage Hotel Classic Suite King: $420/night Deluxe Classic Suite King: $460/night W (Westwood) Fantastic King Studio: $332/night The SLS Hotel Superior Room King: $349/night Premier Room King: $359/night Contact Us For questions or assistance with transportation and room reservations, please contact Olivia Kim by email at okim@platinumequity.com or by phone at +1.310.228.9620. RSVP RSVP [contact-form-7 id="13269" title="AGM-LPAC Page Form"]

AGM

Home / Agm

2022 Limited Partners Annual Meeting November 9 - 10, 2022 RSVP RSVP [contact-form-7 id="13239" title="AGM Page Form"] Welcome Dear Investor, On behalf of our senior leadership team, I am pleased to invite you to Platinum Equity’s 2022 Annual Meeting. The event will begin with a dinner reception for all investors the evening of November 9, followed by an all-day meeting at the Beverly Hills Hotel on November 10. Please RSVP below and review the additional information including recommended area hotels and contact information for use in confirming your participation. Should you have any questions, issues accessing the website or if you would prefer to RSVP by phone or email, please contact Olivia Kim at +1.310.228.9620 or okim@platinumequity.com. We hope to see you here in November. Warm regards, Mark BarnhillPartner Schedule of Events All-Investor Welcome Dinner Wednesday, November 9 at 5:00pm Cecconi's West Hollywood 8764 Melrose Ave, West Hollywood, CA 90069 Recommended Attire: Business Casual Limited Partners Annual Meeting Thursday, November 10 at 8:00am Rodeo Ballroom Beverly Hills Hotel 9641 Sunset Blvd, Beverly Hills, CA 90210 Recommended Attire: Business (tie optional) Thursday’s schedule will include a special luncheon speaker: Former California Gov. Arnold Schwarzenegger Meeting Agenda Welcome and Opening Remarks Summary Year in Review Market Overview Performance Overview Portfolio Operations Update ESG Discussion Questions and Answers Closing Remarks Meeting Concludes Item #1 Hotel Accommodations We have selected these hotels for their close proximity to the meeting location. Each is approximately 30 minutes from Los Angeles International Airport (LAX). It is recommended that you book your room by October 18, 2022 to ensure the best rate and availability. Rates and availability are subject to change until hotel reservation has been confirmed. The rates are based upon single occupancy and do not include taxes and/or surcharges/fees. Beverly Hills Hotel (meeting site) Standard: $695/night Maybourne Superior King Room: $365/night Maybourne King Room: $500/night Sixty Hotel Queen Superior: $341/night King Deluxe: $345/night L'Ermitage Hotel Classic Suite King: $420/night Deluxe Classic Suite King: $460/night W (Westwood) Fantastic King Studio: $332/night The SLS Hotel Superior Room King: $349/night Premier Room King: $359/night Contact Us For questions or assistance with transportation and room reservations, please contact Olivia Kim by email at okim@platinumequity.com or by phone at +1.310.228.9620. RSVP RSVP [contact-form-7 id="13239" title="AGM Page Form"]

Why Detroit Pistons owner and Platinum Equity founder Tom Gores hopes basketball camps can be ‘foundation of success’ for kids

Why Detroit Pistons owner and Platinum Equity founder Tom Gores hopes basketball camps can be ‘foundation of success’ for kids

Home / News / Why Detroit Pistons Owner And Platinum Equity Founder Tom Gores Hopes Basketball Camps Can Be Foundation Of Success For Kids

Jeremiah West was eager to volunteer at the five-day basketball camp recently held in the Petosky-Otsego neighborhood in Detroit.He fondly remembers when he was taught to play by older kids as a youth.“The camp keeps the kids active and teaches them the fundamentals of basketball,” West said of the early August camp that also allowed West to give back to his community. “Some of the kids don’t have a hoop at home so they come here, play basketball, meet new friends and it’s a good thing we have this.”West was one of the assistant coaches at the basketball camp sponsored by Platinum Equity Founder Tom Gores, who is also the owner of the Detroit Pistons. In a partnership with the Boys & Girls Club of Southeastern Michigan, the camp was the last of five Detroit-area camps that Gores sponsored this summer. Detroit was host to two camps, while others were held in Auburn Hills, Taylor and Highland . It was the second consecutive summer that Gores, a Flint native, has sponsored the camps. The goal is to provide recreational opportunities for youths in underserved communities.The camps, which were open to children aged 5-15, focused on skill development, but speakers and community leaders added an emphasis on life skills and health. A Pistons-themed awards ceremony and pizza party capped off the camps. Campers wore T-shirts that read Be Impactful, which is a saying Gores is fond of using as a motivational tool.“Tom’s success is based on how humble he is and from the upbringing he came from,” Gores brother-in-law and family representative Duncan Murdock said. “Both my sister (Holly) and my brother-in-law are people that always think about giving back to community and I think it’s in their blood and DNA to give back to their community.” As bouncing basketballs and youthful laughs filled the Lloyd H. Diehl Boys and Girls Club of Southeastern Michigan, campers listened as head coach Dante Sarmiento and others shared encouraging affirmations for on and off the court.“The focus of the program is to be impactful and not just a normal basketball camp,” Sarmiento said. “It's a camp where we teach skills, but the main focus is on just learning social interaction, learning how to play with each other, learning how to play this great sport, and then providing an environment where kids can be kids and they can have that youthful energy in a very safe environment.”‘It’s only going to get bigger’ It appears the camps are being well-received by the community. Murdock said demand was so high that some interested families had to be turned away.“This was our first year in Taylor and we had to turn away children due to the demand of enrollment,” Murdock said. “Now we’re talking about expanding locations and camp length to reach as many kids as we can.”The Taylor camp had a capacity for 80 kids, but more than 280 signed up.“It’s a blessing and a curse because on one hand, you hate to turn away nearly 200 kids,” BGCSM President Shawn H. Wilson said. “But on the other hand, it really shows that we're doing something special that the community and the kids are leaning into it.”Wilson said at every camp the children look forward to summer because of the basketball program.“Programs like this ensure that our youth have something positive to lean into during the summer, they have a safe place to go, and be a part of something exciting,” Wilson said.Sarmiento said the hope of the program to provide a foundation of success.“Tom is a firm believer in not only building that community but doing it through sports because of his love for the Pistons,” Sarmiento said. “He is finding a way to build programs that are focused on youth because they're the future of everything that we do and build a better place.”

Club Car president discusses company’s future as a ‘lifestyle brand’

Club Car president discusses company’s future as a ‘lifestyle brand’

Home / News / Club Car President Discusses Companys Future As A Lifestyle Brand

EVANS, Ga. – Queen Elizabeth’s mode of transportation recently at the Royal Horticultural Society's Chelsea Flower Show drew considerable media attention.At the age of 95, she was driven in a $75,000, state-of-the art golf cart with all-weather capability. The cart came equipped with cream leather seats with reclining capability. Cup holders, a heated windscreen and Bluetooth capability were among the other features for the luxury vehicle.The cart was manufactured by Garia, a Danish low-speed electric vehicle company acquired by Club Car earlier this year. It was Club Car’s first add-on since being acquired by Platinum Equity in early 2021.Founded in 2005, Garia is known for its luxury golf and leisure cars that attracts customers – like the Queen of England – who are seeking to ride in style when puttering around the neighborhood or at flower shows.The addition of Garia lines up perfectly with Club Car’s direction. Golf remains a mainstay, but with an emphasis on the leisure and utility markers, Club Car’s focus goes beyond the sport. “We feel like we're moving to be a lifestyle brand,” Wagner said recently at Club Car’s headquarters in central Georgia. “Now, that brand must translate into work and work vehicles. Golf is our core, it's how the brand is prevalent, but it’s key to stretch that into these other markets. In some cases, it means cool aesthetic and high features with the colors and nice fabrics. It's interesting how we're sharing those features across all of our portfolio, so if the brand is to benefit, we know we've got to stretch it, we know we've got to mature it to really penetrate these other markets.”In a wide-ranging conversation, Wagner touted the promise of Club Car roughly one year after Platinum acquired the company from Ingersoll Rand for $1.7 billion.(Answers have been edited for clarity and length).PE: Club Car is known as a golf cart manufacturer, but what are other areas of focus for the company?Wagner: We're one of the world's largest producers of low-speed, small-wheeled vehicles, many of which are electric, but we also make gas and diesel vehicles. There are three markets, golf being one. Utility vehicles are a large market. That's people using our vehicles for work. Things like maintenance, housekeeping and people transport. The really fast-growing piece of the business is the consumer side where people use our vehicles for leisure in neighborhoods.PE: You're a premium product. Is that a differentiator from competitors?Wagner: We enjoy some of the longest-running vehicles in the industry. (The vehicles are) not just aesthetically pleasing but are exciting to ride. They perform great and can do the work that the rider needs and it lasts a long time. Many of our customers are repeat customers.PE: Explain Club Cars' presence within Ingersoll Rand and why it chose to divest.Wagner: We were the second smallest business in the corporation. We were a stable, consistent performer and a good cash generator. There was a lot of passion around the brand from the board and the leadership team. A few years ago, Ingersoll Rand started to think about becoming a pure-play global company, so they split the climate division and the industrial division. We were transacted in the industrial division. At that same time, our consumer business had launched and was really growing and really expanding. And for the first time, we were a growth engine inside the corporation.Wagner: I think we became a little more attractive to put on the market to acquire, and I think Ingersoll Rand realized that they probably weren't the best owner for us. The growth maybe had exceeded the investment that they wanted to put in our non-core business.PE: What is the potential of Club Car as a standalone company?Wagner: The three markets that we serve are dramatically growing anywhere between high single-digits to mid double-digits. There are mega trends around the world that are fueling our markets; last-mile delivery and electrification of vehicles in Europe, leisure and neighborhoods with amenities in the U.S., and then what is a post-COVID golf boom with some of the highest historical rounds played in golf in 20 years. As a standalone company, we're a little more nimble, much more focused. Our investments have increased to capitalize these markets.PE: Explain what you mean by last-mile delivery.Wagner: Last mile is normally talked about with goods and services, thinking about products delivered to metro areas. They're being shipped into those areas and they need to get dispersed. Think of how Amazon gets products to where they need to be. In metro centers in Europe, that's electric vehicles only. Many of those centers, you can't have gas or diesel engines either at night or at all. Many packages are being delivered into those cities with electric vehicles. That's a real driving force. It's a $2 billion industry just for the utility business alone, with almost half of that being the last-mile delivery piece.PE: Give us a general update on the transformation under Platinum.Wagner: We were almost 20 years inside (Ingersoll Rand). To stand up everything from payroll to finance, to legal, to tax and IT, all of that work is really 100% done now. On the transformation side, we heavily focused on our operations and supply chain with a series of consultants. That work is still ongoing.PE: The release announcing the sale to Platinum mentioned the firm's carve-out expertise. What does that mean? Why was that important?Wagner: We knew it was going to be a lot of work to carve us out. About three-quarters of our leadership team had only been with public corporations in their careers. When we looked at Platinum and their portfolio and really their specialty, we knew that their expertise of the carve-out would be needed for us to be successful. That was a real differentiator for them to be able to deliver that and help that. We could have never done that on our own. We just wouldn't have had the experience to do it. We thought that was an asset and it really has been.PE: How did that carve-out expertise play out during the diligence process?Wagner: We've seen the diligence process from both sides. Both being acquired and then working closely with the Platinum team on acquiring other companies. I think the diligence process was robust. A long series of questions with follow ups. Subject matter experts were brought in, both internal to Platinum and consultants in areas like IT or legal or other areas.Wagner: As we switched to the acquisition process, the insight was a little different. There was a lot of risk management discussion, areas of concern, things that could either prevent growth or increase expense. Those follow ups were specific, poignant in areas to reduce risk over time. I appreciated it in the acquisition process.PE: Tell us about Club Car’s growth since Platinum transaction.Wagner: The demand on this business is significant. The bookings numbers coming in are very high. We have more than a year of backlog on our books with more orders coming in every hour. It's really a sprint now to ramp up capacity and volume. We've enjoyed growth together since the acquisition with probably even more growth planned for the second half of 2022.PE: What are growth opportunities and where is Club Car headed?Wagner: With the (Garia) acquisition, we have a very large breadth of vehicles at our disposal, both in the consumer space and in the utility space and can continue to benefit from the golf success. The industry availability is very low, it's like automotive dealers being empty, so it's going to take us years just to build up that inventory inside our dealer network because the demand's so high. You've got that as a tailwind as well.Wagner: Municipality and university, those markers want to procure all that stuff together. They want to have high payload and nimble vehicles all at the same time in a bid. We'll be able to do that and benefit from that. Lithium is a major trend in this industry as well. More of our products are being developed with lithium which is great benefit to the customer, but also higher sales prices and margin prices for us. We're launching a new consumer vehicle in September after four years of development that will be a game changer between a golf cart and automotive, something special for neighborhoods and families to enjoy.PE: Where do you see Club Car in five years?Wagner: It's a more global business. I think it's a heavily EV business. We have obviously been in electric vehicles for 60 years, but electric is becoming such a high percentage of the business that is our future. The business is Tesla-like fun. There will be an emphasis on technology in autonomous, technology in our connectivity, how we're delivering entertainment or knowledge or safety inside the vehicles. Those are all compelling.Wagner: The last piece, I would aspire to have this business be more of a leader in our space in safety and regulations. There's a lot of work to do here, some is part of ESG that I think could be in that framework, some would be just better stewards. Those are real opportunities for us in the future. 

How Ball Metalpack $1.35 billion divestiture shows Platinum Equity can be a ‘trusted partner’ to corporate sellers

How Ball Metalpack $1.35 billion divestiture shows Platinum Equity can be a ‘trusted partner’ to corporate sellers

Home / News / How Ball Metalpack 1 35 Billion Divestiture Shows Platinum Equity Can Be A Trusted Partner To Corporate Sellers

Stakeholders give insight into how good relations and trust are vital when it comes to corporate partnershipsWhen Platinum Equity and Ball Corporation sold Ball Metalpack to Sonoco for approximately $1.35 billion, it marked a successful exit for a Platinum-sponsored partnership with a corporate seller.The sale came after a comprehensive three-year transformation program where Ball Metalpack, the sustainable steel container manufacturer based in Colorado, was established as a standalone enterprise through a broad range of operational improvements throughout the business. The containers are used for aerosol products, food, household consumables, pet food, nutritional and other products in North America.Priorities for the transformation program included footprint optimization, new product development, expansion of the company's capabilities, and investments in growth and operational excellence. Ball Metalpack invested approximately $100 million in state-of-the-art manufacturing infrastructure since 2018 when the partnership was formed. Platinum Equity owned 51 percent; Ball Corporation 49 percent.Platinum Equity Partner Louis Samson noted that Platinum Equity has experience creating similar transaction structures with large corporations when they are seeking to divest assets. Ball joins Caterpillar (Neovia Logistics), Emerson (Artesyn Technologies and Vertiv), and Telstra (Sensis) as companies that have participated in equity upside along with Platinum Equity.“We find that corporate sellers can benefit from a structure that allows for a partial sale at the outset of their divestment process, with the opportunity to deliver incremental value by participating in the upside we can create together,” Samson said. “This investment is another successful story of aligning our interests with those of one of the world's leading corporations and delivering value for both of us.”Ball Corporation Chairman and former CEO John A. Hayes, Samson and other Platinum executives were asked to give their insights into the Ball Metalpack exit.(Answers have been edited for clarity and length).Hayes on Platinum’s operational capabilities: “Over the years, it has become clear to us at Ball that Platinum is a differentiated private equity firm with a tremendous operational capability and high standards of integrity. Platinum is a trusted partner – the firm's carveout expertise, operational capabilities and relentless approach to execution proved to be a powerful combination, and the impact we have been able to achieve together speaks for itself.”Samson on the cooperation with Ball Corporation: “Three years ago, John Hayes came to us with a clear-eyed vision for what Ball Metalpack could accomplish by creating a structure that would bring us together as partners and deploy the full Platinum toolkit to create value,” Samson said. “We quickly mapped out a plan, negotiated a deal that aligned our interests, and then our teams went to work. I'm proud that by joining forces we were able to deliver on behalf of the company and its shareholders.”Platinum Principal Koustubh Patwardhan on  Platinum’s packaging expertise and building trust early: “We've spent a lot of time in the packaging space. By the time we came to look at the Metalpack deal, we were very quick, we knew the key deal points or what the hot buttons would be. We were able to get to a deal in pretty short order because we had that base knowledge.”Platinum Managing Director Delara Zarrabi on working with Ball: “It was just two teams always working together. I think because John and Louis had built that relationship really early and trusted each other, any bump along the way was just putting our heads together and getting through the issue. It was always, how can we fix it?”Zarrabi on how operational focus overcame challenges: “We delivered to our customers when some of our competitors couldn't. We were really malleable and creative in procuring steel when the market was challenging. Our investment in people and infrastructure allowed us to deliver to our customers in a time of really tight supply and really strong demand. All those investments we made in people, process and operations, throughout that journey, were the reasons why we could really deliver.

Solenis To Acquire Clearon Corp. and Combine Pool Businesses

Solenis To Acquire Clearon Corp. and Combine Pool Businesses

Home / News / Solenis To Acquire Clearon Corp And Combine Pool Businesses

Acquisition will expand Solenis’ product offering and strengthen its ability to supply cost-effective, sustainable solutions for recreational pool and spa customers, providing clean, clear, safer water.  WILMINGTON, Del. and SOUTH CHARLESTON, W.Va. (USA) — Solenis and Clearon Corp. have announced that Solenis has entered into a definitive agreement to acquire Clearon. This acquisition will enable Solenis to expand its portfolio of products for the residential and commercial pool water and spa treatment markets. Clearon produces trichloroisocyanuric acid (trichlor) and dichloroisocyanuric acid (dichlor) at its South Charleston, W.Va. plant and converts these core chemistries into an array of finished goods at its tableting and packaging facility. Products include sanitizers and disinfectants for applications such as recreational water treatment, as well as household, industrial and institutional (HI&I) and other water treatment applications. The transaction is expected to be completed before the end of 2022, subject to regulatory approval and customary closing conditions. Financial terms were not disclosed. Solenis and Clearon will continue to operate as independent companies until the transaction is complete. “This acquisition will help Solenis fulfill a strategic growth initiative following our recent ownership change to Platinum Equity, driving value through our branded Pool Solutions sanitization product line while providing an enhanced customer experience through expanded offerings and cost-effective pool solutions,” said John Panichella, CEO, Solenis. “We continue to work closely with the Platinum Equity team to identify opportunities to add value for our customers and drive growth for the Solenis team.” “Clearon is an important accelerator in our strategic growth road map and will be a step change in our ability to delight customers and consumers,” said Robert Baird, president of Pool Solutions at Solenis. “We’re excited to add Clearon’s impressive portfolio of consumer solutions and remain vigilant in our quest to build the world’s leading company in pool and water care solutions.” “Once closed, this transaction will align the strong legacy and complementary capabilities of two remarkable companies, both of whom are committed to safe, reliable and sustainable operations for the betterment of their customers and the communities in which they operate. This combination will allow our customers to be met with a diverse portfolio of solutions while providing tremendous growth opportunities for Clearon’s most precious asset, our employees,” said Bryan Kitchen, president and CEO, Clearon Corp. Holland and Knight LLP is providing legal counsel and Willkie Farr & Gallagher LLP is providing debt financing counsel to Solenis. BofA Securities and Goldman Sachs are leading the debt financing for the acquisition. Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel to Clearon. BDAPartners is acting as Clearon’s financial advisor in respect of the transaction. For more information, visit www.solenis.com. About SolenisSolenis is a leading global producer of specialty chemicals focused on delivering sustainable solutions for water-intensive industries, including the pulp, packaging paper and board, tissue and towel, oil and gas, petroleum refining, chemical processing, mining, biorefining, power, municipal, and pool and spa markets. Owned by Platinum Equity, the company’s product portfolio includes a broad array of water treatment chemistries, process aids and functional additives, as well as state-of-the-art monitoring and control systems. These technologies are used by customers to improve operational efficiencies, enhance product quality, protect plant assets, minimize environmental impact and maintain healthy water. Headquartered in Wilmington, Delaware, the company has 48 manufacturing facilities strategically located around the globe and employs a team of over 6,000 professionals in 120 countries across five continents. Solenis is a 2022 US Best Managed Company. For additional information about Solenis, please visit www.solenis.com or follow us on social media. About ClearonClearon Corp. is a specialty chemical manufacturer based in South Charleston, West Virginia. The company’s portfolio includes essential sanitizers and disinfectants for water treatment and household, industrial and institutional applications. The company is committed to the development and manufacturing of essential, sustainable chemistries and novel delivery solutions to the delight of their customers. Clearon is committed to maintaining a safe and reliable operations for their customers, employees, and the communities in which they operate.FOR FURTHER INFORMATION: SolenisCatherine (Katy) Abernathy     +1 904-910 1071                               cmabernathy@solenis.com  ClearonJ. Bryan Kitchen(239) 682-8280bryan.kitchen@clearon.com