Content Type
E&A Scheer
Home / Our Company / Ea Scheer
E&A Scheer Private Transaction Europe Active Consumer Food & Beverage A leading global blender and vendor of premium rum in bulk Company Overview Headquartered in Amsterdam, E&A Scheer sources and creates bespoke high-quality bulk rum blends for global clients. Via a subsidiary, MRC, procures and ages exceptional rare rum barrels at a facility in Liverpool. E&A Scheer combines cutting edge modern facilities with three centuries of heritage and know-how. Transaction Description Acquired in January 2024 from The Riverside Company Years of Operation 300+ Deccaweg 22 1042 AD Amsterdam, The Netherlands www.rum.nl/en/home/eascheer A leading global blender and vendor of premium rum in bulk Company Overview Headquartered in Amsterdam, E&A Scheer sources and creates bespoke high-quality bulk rum blends for global clients. Via a subsidiary, MRC, procures and ages exceptional rare rum barrels at a facility in Liverpool. E&A Scheer combines cutting edge modern facilities with three centuries of heritage and know-how. Years of Operation 300+ Transaction Description Acquired in January 2024 from The Riverside Company Deccaweg 22 1042 AD Amsterdam, The Netherlands www.rum.nl/en/home/eascheer Photo Gallery Previous Next × × Latest Article Platinum Equity to Acquire Sunrise Medical June 05, 2024 Investment in Germany-based maker of wheelchairs and mobility solutions adds to momentum of Platinum’s European investment teamLOS ANGELES (June 5, 2024) – Platinum Equity announced today the signing of a definitive agree...Read More Latest Article Latest Article Platinum Equity Portfolio Company HC Companies Acquires Classic Home & Garden May 29, 2024 Complementary acquisition brings together leaders in functional pots and decorative containers to create "one stop shop" for horticulture growers, retailers and distributors LOS ANGELES, May 28, 2024 - The HC Companies, ...Read More Latest Article Latest Article Platinum Equity Co-President Jacob Kotzubei talks coping with inflation, firm’s carveout expertise at Milken Institute Global Conference May 17, 2024 For the second consecutive year, Platinum Equity Co-President Jacob Kotzubei was invited to participate in a Milken Institute Global Conference panel discussion. Flanked by other senior private equity investment profession...Read More Latest Article previous Next Our Portfolio Explore the full Platinum Equity portfolio of companies by transaction type, industry, location or ownership status. Browse now
Kohler Energy
Home / Our Company / Kohler Energy
Kohler Energy Active Corporate Divestiture Global Industrials Technology Energy A global leader in energy resilience, providing mission-critical power solutions to homes, businesses and equipment Company Overview Kohler Energy is a global leader in distributed energy solutions, providing energy resilience solutions across Home Energy, Industrial Energy Systems, and Powertrain Technologies. Portfolio of brands includes Power Systems, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Heila Technologies, Curtis Instruments, and Engines. Large, global footprint in over 100 locations across the Americas, EMEA, and Asia. Transaction Description Acquired a controlling stake from Kohler Co. in May 2024 Years in Business 100+ Locations 100+ www.kohlerenergy.com A global leader in energy resilience, providing mission-critical power solutions to homes, businesses and equipment Company Overview Kohler Energy is a global leader in distributed energy solutions, providing energy resilience solutions across Home Energy, Industrial Energy Systems, and Powertrain Technologies. Portfolio of brands includes Power Systems, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Heila Technologies, Curtis Instruments, and Engines. Large, global footprint in over 100 locations across the Americas, EMEA, and Asia. Years in Business 100+ Transaction Description Acquired a controlling stake from Kohler Co. in May 2024 Locations 100+ www.kohlerenergy.com Photo Gallery Previous Next × × × × × Latest Article Platinum Equity Portfolio Company Hop Lun Acquires P.H. Garment June 07, 2024 LOS ANGELES and HONG KONG (June 6, 2024) – Platinum Equity portfolio company Hop Lun, one of the world’s largest designers and manufacturers of intimate apparels, announced today the acquisition of P.H. Garment.Headquarte... Read More Latest Article Latest Article Platinum Equity to Acquire Sunrise Medical June 05, 2024 Investment in Germany-based maker of wheelchairs and mobility solutions adds to momentum of Platinum’s European investment team LOS ANGELES (June 5, 2024) – Platinum Equity announced today the signing of a definitive a... Read More Latest Article Latest Article Platinum Equity Portfolio Company HC Companies Acquires Classic Home & Garden May 29, 2024 Complementary acquisition brings together leaders in functional pots and decorative containers to create "one stop shop" for horticulture growers, retailers and distributors LOS ANGELES, May 28, 2024 - The HC Companies, ... Read More Latest Article previous Next Our Portfolio Explore the full Platinum Equity portfolio of companies by transaction type, industry, location or ownership status. Browse now
Platinum Equity Portfolio Company Hop Lun Acquires P.H. Garment
Home / News / Platinum Equity Portfolio Company Hop Lun Acquires P H Garment
LOS ANGELES and HONG KONG (June 6, 2024) – Platinum Equity portfolio company Hop Lun, one of the world’s largest designers and manufacturers of intimate apparels, announced today the acquisition of P.H. Garment.Headquartered in Hong Kong, P.H. Garment is an innovative private label manufacturer of high-quality bras, shapewear and performance-driven active wear for world renowned fashion brands.The company has three manufacturing facilities in Bangladesh and China and provides a full range of design and production services, including expertise producing bonded products (fusing fabrics seamlessly using heat or adhesive). We are continuing to seek opportunities for Hop Lun to expand and diversify its capabilities, increase scale and add more value for its customers. We are working with Erik and the company’s leadership team to identify and pursue additional opportunities for growth, both organically and through strategic M&A. Jacob Kotzubei and Matthew Louie, Co-President and Managing Director, Platinum Equity “We welcome the P.H. Garment team to the Hop Lun family,” said Erik Ryd, Founder and CEO of Hop Lun. “We believe our businesses are highly complementary are excited to work together leveraging our combined expertise to give even better service to our customers. P.H. Garment’s expertise in bonded products, in particular, will open new avenues for growth at Hop Lun.”Eddie Wong, Founder and Executive Director of P.H. Garment said: “The P.H. Garment team is excited to join Hop Lun and we look forward to leveraging Hop Lun’s resources, design capability and manufacturing scale to expand our services and solutions for our customers.”Based in Hong Kong, Hop Lun employs more than 26,000 people and has manufacturing operations in Bangladesh, China and Indonesia. The company produces products for many of the world’s largest global retailers as well as for its own in-house brands.PH Garment is the second add-on acquisition Hop Lun has completed in the last six months. In December 2023 Hop Lun acquired Rainbow West Apparel.“We are continuing to seek opportunities for Hop Lun to expand and diversify its capabilities, increase scale and add more value for its customers,” said Platinum Equity Co-President Jacob Kotzubei and Managing Director Matthew Louie in a joint statement. “We are working with Erik and the company’s leadership team to identify and pursue additional opportunities for growth, both organically and through strategic M&A.”Latham & Watkins LLP provided legal counsel to Hop Lun on the acquisition of P.H. Garment.About Platinum EquityFounded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $48 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. 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 28 years Platinum Equity has completed more than 450 acquisitions.About Hop LunEstablished in 1992 and headquartered in Hong Kong, Hop Lun is the leading designer and manufacturer of intimate apparels, and is the largest global provider of bra solutions. It employs over 28,000 people across its global operations in Bangladesh, Indonesia, China and Hong Kong.About P.H. Garment Founded in 1988 in Hong Kong, P.H. Garment has grown into a premier private label manufacturer for innovative high-quality bras, shapewear and performance driven active wear through pioneering manufacturing know-how, a robust talent pool and strong customer relationships. The company has three manufacturing plants in Bangladesh and China.
Platinum Equity to Acquire Sunrise Medical
Home / News / Platinum Equity To Acquire Sunrise Medical
Investment in Germany-based maker of wheelchairs and mobility solutions adds to momentum of Platinum’s European investment team LOS ANGELES (June 5, 2024) – Platinum Equity announced today the signing of a definitive agreement to acquire Sunrise Medical, a world leader in advanced assistive mobility solutions, from Nordic Capital. Financial terms were not disclosed. The acquisition is expected to be completed in Q3 2024, subject to customary regulatory approvals. Sunrise Medical, a global market leader for assistive mobility solutions, is active in the development, design, manufacturing, and distribution of assistive mobility products and solutions such as manual and power wheelchairs, power assist products, pediatric and geriatric therapeutic devices, mobility scooters, seating and positioning systems as well as daily living aids and other home medical equipment. Products are marketed under the Quickie, RGK, Magic, JAY, Zippie, Leckey, Breezy, Sterling and other proprietary brands and are sold through a network of homecare medical product dealers or distributors in over 130 countries. Headquartered in Malsch, Germany with North American headquarters in Fresno, California, the company has manufacturing facilities in the United States, Mexico, Germany, United Kingdom, Spain, and China. “Sunrise Medical is an innovative, global company that has been a pioneer in mobility solutions for more than 40 years,” said Platinum Equity Co-President Louis Samson. “We believe strongly in the company’s core mission and are committed to partnering with the management team to continue investing in development of advanced clinical solutions tailored to the individual needs of people who depend on them.” Thomas Babacan, President and CEO of Sunrise Medical, will continue leading the company following the transition to new ownership. “We are a purpose-driven company with the ability to positively impact people’s lives,” said Babacan. “As we continue to innovate and grow, we have the opportunity to be impactful on an even larger scale. Platinum has a lot of experience supporting complex, global businesses and the firm’s financial resources and operational expertise will be especially valuable to our mission. We are excited about the opportunities ahead.” The acquisition is being led by Platinum Equity’s European investment team based in London. “Sunrise Medical has established an impressive global network serving the mobility needs of people around the world,” said Platinum Equity Managing Director Igor Chacartegui. “We will continue investing in organic growth and also pursue acquisitions that can expand or fill in gaps in the company’s product line, provide new technological capabilities, or further extend the company’s geographic reach.” JP Morgan is serving as financial advisor to Platinum Equity on the acquisition of Sunrise Medical. Willkie Farr & Gallagher LLP is providing legal counsel and Latham & Watkins LLP is providing regulatory counsel to Platinum Equity on the transaction. About Platinum Equity Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $48 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. 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 28 years Platinum Equity has completed more than 450 acquisitions. About Sunrise Medical Committed to improving people's lives, Sunrise Medical is a global leader in the development, design, manufacturing, and distribution of innovative, high-quality assistive mobility devices and services. Distributed in more than 130 countries under its own 18 proprietary brands, the key products include manual and power wheelchairs, power assist products, pediatric and geriatric therapeutic devices, mobility scooters, daily living aids and more. Operating in 23 countries, Sunrise Medical Group is headquartered in Malsch, Germany and employs over 2,800 associates worldwide. For further information, please visit: https://sunrisemedical-group.com/.
Platinum Equity Portfolio Company HC Companies Acquires Classic Home & Garden
Home / News / Platinum Equity Portfolio Company Hc Companies Acquires Classic Home Garden
Complementary acquisition brings together leaders in functional pots and decorative containers to create "one stop shop" for horticulture growers, retailers and distributors LOS ANGELES, May 28, 2024 - The HC Companies, a leading North American manufacturer of horticultural containers, announced today the acquisition of Classic Home & Garden (CHG), a premier provider of decorative and functional products for the lawn and garden market in North America. Financial terms were not disclosed. Headquartered in Shelton, CT, CHG designs, sources and sells decorative garden pots and an array of backyard décor products. In recent years CHG has introduced new product lines focused on water conservation, eco-friendly products and packaging, and optimized transport. The HC Companies CEO Bob Mayer said CHG's strength in decorative containers fits seamlessly with HC's focus on functional grower products. "This is a strategic and highly complementary combination of two companies that each have their own distinct value propositions," said Mayer. "There is little overlap between the two and joining forces will create new opportunities for both businesses through cross-selling, production and distribution efficiencies, customer acquisition, channel penetration and product innovation. We are creating a 'one stop shop' that can simplify the value chain and streamline procurement and retail merchandising for our partners. We believe that is great news for growers, retailers, distributors and employees alike." CHG owner and CEO Fred Ryan will remain a significant investor in the combined business and will serve as President. "I'm proud of the CHG team and the contributions they have made to the success of our business over the years," Ryan said. "Our growth has been driven by a culture of innovation, design and unwavering commitment to quality and customer service. Those core values will continue to guide us as we step onto a larger stage with greater opportunity to expand our reach and our impact." Platinum Equity acquired HC in 2023 and the investment is led by the firm's Small Cap team. "When we acquired HC Companies we set out to create a best-in-class, diversified player of scale within the broader horticultural market," said Platinum Equity Partner Jacob Kotzubei and Managing Director Nick Fries in a joint statement. "HC's transformational acquisition of CHG is an exciting and important step in that process. We will continue to work with Bob and Fred to evaluate additional strategic M&A opportunities across the lawn and garden market." Willkie Farr & Gallagher LLP served as legal counsel and Alston & Bird LLP served as financing counsel to HC Companies on the CHG acquisition. Stout served as financial advisor to HC Companies. Berkowitz, Trager & Trager, LLC and Locke Lord LLP served as legal counsels to CHG. Piper Sandler Companies served as CHG's sell-side financial advisor. About The HC Companies, Inc. The HC Companies is a proud culmination of many legacy brands and continues to transform the horticultural industry through bold leadership, innovative manufacturing, and a comprehensive portfolio of products ideal for greenhouse, nursery, retail, and commercial markets. Headquartered in Twinsburg, Ohio, with production and distribution facilities throughout North America, HC manufactures growing solutions using the latest technologies and materials to satisfy the challenges of a continuously evolving industry. In addition to their horticultural containers, HC also supports a full line of sustainably sourced solutions including protective packaging, consumer products, growing containers, and more. For information on The HC Companies, visit hc-companies.com (growing containers) or hc-sustainable.com (sustainable products). About Classic Home & Garden Classic Home & Garden (CHG) is a leading provider of decorative planters and pots to national retailers, distributors, florists and garden centers across North America. Headquartered in Shelton, Connecticut, CHG's entrepreneurial and talented team continuously innovates and challenges the status quo to provide exceptional products and service to customers. CHG supports a comprehensive line of planters in a variety of materials, along with a wide assortment of garden décor to create inspiring and impactful indoor and outdoor living spaces. Through strong relationships with breeders and growers, CHG has cultivated a deep market expertise to develop more functional, aesthetically pleasing products that better match consumer needs. For more information on CHG, visit classichomeandgarden.com. About Platinum Equity Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $48 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. 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 28 years Platinum Equity has completed more than 450 acquisitions.
Platinum Equity Co-President Jacob Kotzubei talks coping with inflation, firm’s carveout expertise at Milken Institute Global Conference
Home / News / Platinum Equity Co President Jacob Kotzubei Talks Coping With Inflation Firms Carveout Expertise At Milken Institute Global Conference
For the second consecutive year, Platinum Equity Co-President Jacob Kotzubei was invited to participate in a Milken Institute Global Conference panel discussion. Flanked by other senior private equity investment professionals during an hour-long discussion titled Private Equity Delivering Value, Kotzubei addressed many topics, which included: Platinum Equity’s operational approach to building value. Platinum Equity’s long history of creating value through complex carveouts from corporate sellers. Platinum Equity’s portfolio-wide approach to the Federal Reserve’s interest rate policies. “Across private equity as an asset class, the surface still looks really quite calm,” Kotzubei explained to a packed ballroom. He acknowledged that the Fed’s efforts to fight inflation by raising interest rates appear to be working. He cautioned that in a levered ecosystem, however, increased borrowing costs put pressure on portfolio company balance sheets. “Defaults haven't exploded, but there are a lot of businesses being held in private equity that are at or near negative cashflow. And the pressure point is not the month or the quarter or even the year, it's the maturity,” he explained. “It is a cost that is going up in your business, and if you don't have a system and a team that can adapt, you have a problem.” “I think there are many people (in private equity) whose entire careers have been in more docile environments. I think they just don't have those skills.” Kotzubei said the key for Platinum Equity, which has been through multiple cycles over the firm’s 29 years in the buyout business, has been engaging with portfolio company management teams developing comprehensive plans. “We were able to go across our entire portfolio of 50-plus companies and have conversations with the management teams about how to react,” Kotzubei said. “One way to react is making sure you have a really good pricing strategy and pricing discipline.” And strong, proactive leadership teams are a must. “We had management teams who were seeing it in their business and had a plan, and we had management teams who weren't seeing it but once they heard from us, kind of understood it and created a plan,” said Kotzubei. “We had the occasional conversation with management teams who weren't seeing it, didn't want to prepare a plan, didn't think they needed to, and that was a very long conversation.” Ultimately, Kotzubei said he believes the most successful CEOs appreciate the partnership with Platinum Equity and leverage the firm’s deep operations experience. “We have over 300 employees at Platinum and about a hundred of those are on the operations side. We offer (portfolio company management teams) a lot of help and what we have found is that the most capable, most secure leaders don't fear that help, they embrace it.” Earlier in the discussion, Kotzubei was asked about competition in the current M&A market on the buy side. “I think where you can get better opportunities is where there is complexity,” he answered. “We specialize in corporate divestitures, we have for 29 years, and we love large, complex global corporate divestitures. You can see a lot of opportunity, but also the competition can winnow quite a bit because that's a very tough skillset.” The day before the Milken panel, Platinum Equity announced it had completed the acquisition of Kohler Energy, a carveout of the global maker of backup power generators and energy resilience solutions from Kohler Co. Kotzubei cited Vertiv Holdings as an example of Platinum Equity’s carveout success. Initially a $4.2 billion acquisition from Emerson that was rebranded as Vertiv, the company was later merged with a special purpose acquisition company and listed on the New York Stock Exchange (NYSE: VRT). Vertiv provides critical infrastructure and services for data centers and its market cap has grown to approximately $30 billion. It is currently the most financially successful SPAC transaction ever. “We identified a market that we thought was a good market, a business that was under optimized in a complex global corporate divestiture where we have a skillset that others didn't,” he concluded. It was the 27th annual Milken gathering, and Kotzubei joined a lineup of prominent investment bankers, institutional investors, and celebrities at the bipartisan think tank’s gathering to promote progress and prosperity.
Club Car Championship raises an event record $450,000 for charity
Home / News / Club Car Championship Raises An Event Record 450000 For Charity
The recent Club Car Championship raised a record $450,000 for Savannah, Ga. charities, according to WTOC-TV. Pro golfer Steven Fisk birdied three of the final four holes of regulation to win in a sudden-death playoff at The Club Car Championship, which is part of the Korn Ferry Tour. The event has raised more than $1.6 million for charity since it was started seven years ago. This year’s tournament took place in April at The Landings Golf & Athletic Club. “At the heart of the Club Car Championship at The Landings Golf & Athletic Club is raising critical dollars to create a positive impact in the greater Savannah community and beyond,” tournament director Cheyenne Overby said. “The Club Car Championship is committed to continuing to grow the tradition of giving this tournament has established.” Multiple charities are slated to benefit from the money that was raised during the golf event, which includes the list below: Brightside Child & Family Advocacy EmployAbility Folds of Honor Girls on the Run: Coastal Georgia & Lowcountry Kids Cafe Program at Second Harvest of Coastal Georgia Park Place Outreach Youth Emergency Services The Landings Military Relief Fund Landings Landlovers First Tee Savannah Club Car, acquired by Platinum Equity from Ingersoll Rand in 2021, is a manufacturer supplying a range of golf, consumer and commercial vehicles used around the world. Founded in 1958, the company serves consumers as well as commercial customers, such as hotels and resorts, college campuses, airlines, theme parks and rental companies.
How Platinum Equity built ‘foundation of trust’ to earn Kohler Co.’s confidence as investment partner in energy resilience business
Home / News / How Platinum Equity Built Foundation Of Trust To Earn Kohler Co S Confidence As Investment Partner In Energy Resilience Business
In late 2019, Platinum Equity was performing diligence on Kohler Co.’s energy resilience division. Kohler Co., a global name with more than 40,000 employees, is known for its kitchen and bath products. But the pandemic hit. Platinum Equity Co-President Jacob Kotzubei says his last in-person meeting was at Kohler Co. headquarters in Madison, Wisc., before the lockdowns. With uncertainty, the Kohler family decided to temporarily pause the sale process. Over the next few years, Platinum Equity executives Kotzubei, Matt Louie and others remained in contact with Kohler’s management team, growing and strengthening the relationship. In November 2023, Kohler selected Platinum Equity as the majority investment partner in its standalone energy resilience business, Kohler Energy. Kohler is still invested in the business, remaining committed to supporting the business’ upward trajectory and is aligned with Platinum Equity’s vision for the next steps. Kohler Co. Chair and CEO David Kohler is serving on the company’s board. We are excited about the prospects for the business, which has been at the forefront of energy resilience for more than a century. We have tremendous respect for David Kohler and the Kohler leadership team, appreciate their confidence in us, and are grateful for their continued partnership. Jacob Kotzubei, Co-President, Platinum Equity “This strategic move allows Kohler to focus and invest in our global Kitchen & Bath, Wellness, and Hospitality businesses while also positioning the Energy business to reach its full potential under the ownership of Platinum Equity,” David Kohler said when the transaction closed in May 2024. “I want to thank the entire Energy team; the performance of this business over the last three years has been remarkable. Exciting times are ahead, and Energy will forever have a special place in our company’s heritage.” Financial terms of the deal were not disclosed. “Platinum is committed to strengthening Kohler Energy’s position as an industry leader and investing in development of a new generation of innovative energy resilience solutions,” Platinum Equity Co-President Jacob Kotzubei said. “We are excited about the prospects for the business, which has been at the forefront of energy resilience for more than a century. We have tremendous respect for David Kohler and the Kohler leadership team, appreciate their confidence in us, and are grateful for their continued partnership.” Brian Melka, CEO of Kohler Energy, added: “The demand for resilient energy is growing, and the world needs much more of what we do. Platinum Equity firmly supports our growth path ahead and will can help further accelerate our progress in the global energy resilience industry.” Kohler Energy is comprised of multiple business units and has a broad portfolio of products including electric generators for both industrial and home settings, gas and diesel engines, and electric powertrain components. The deal marks Platinum Equity’s latest complex carveout from a global corporate company. It completed similar transactions with familiar names like Ball Corporation, Caterpillar, Emerson Electric, Ingersoll Rand and Johnson & Johnson. “An important reason we were chosen centers on our corporate carveout abilities and joint venture successes to date,” Louie said. Kotzubei and Louie offered additional insights about the investment. Q: Platinum is the majority investment partner in Kohler Energy, and Kohler Co. has a minority interest. Why did a joint venture make sense here? Louie: We like joint venture structures because they allow the seller to retain skin in the game. When sellers desire a joint venture structure with Platinum, we attribute it to our history of successes with joint venture deals. David Kohler has a strong conviction that the strategic investments he’s made in the business, combined with our operational and M&A capabilities, make a robust combination. We are also intentional in searching for opportunities that can leverage our experience from previous industrial tech deals, like the ones we did with Vertiv and Emerson. We are always looking for ways to replicate the success we’ve had with other industrial tech investments and build on themes and playbooks we have had success with. Q: Why did Kohler reengage with Platinum after the process was shut down in 2019? Kotzubei: We stayed in touch with the Kohler family, and let them know that we were still interested. They relaunched the process in March of 2023, and we were invited to participate in that process. We worked hard to really distinguish ourselves over several months of diligence. This is a complex global carveout and we have a lot of experience. There are indications that when Kohler made the decision to focus on Platinum, we were picked because of our track record, because of our reputation, and because of the people at Platinum involved in the diligence process. Q: Why is Platinum known for doing carveout transactions? Louie: It is a core part of our firm. Tom Gores started the firm by doing corporate carveout transactions. We have a long-standing history of successes in executing corporate carveout transactions, particularly on a global basis. I think we‘ve built a reputation trying to execute deals as seamlessly as possible while in parallel being a great transaction partner. Establishing a history of successful transactions has also allowed us to continue building out our operations team, which has done a good job of executing corporate carveouts and driving value. Together, that creates a kind of virtuous circle. Q: What are the tailwinds for this business? Kotzubei: A big driver for this business is data centers, which require backup generator power in the event the grid fails. We know that space well through our investment in the carveout of the Network Power Business (Vertiv) from Emerson Electric, which supplies uninterruptible power supplies and cooling to the data center market. Louie: There have been measurable increases in the number of billion-dollar weather events, and they're likely only going to continue. This should drive an increased need for resilient energy solutions. We also see a massive issue today with aging grid infrastructure. The majority of the world's power grid was built over 40 years ago and in our view this leads to significant vulnerabilities as well as an inability to connect with modern renewable energy sources. Kotzubei: We also like the sustainability possibilities. We spent time on the sustainability characteristics of providing backup generators and we think this is a business that fundamentally has the engineering talent to deliver whatever energy resiliency methodology becomes dominant. For instance, today large-scale backup generators generally run on traditional fuel, but Kohler’s entire offering of mission-critical diesel generators is compatible with hydrotreated vegetable oil, which is up to 90% carbon neutral and made entirely from waste products. HVO is readily available in Europe. Not so much yet in the U.S. right now, but they’re certified for it. If hydrogen were to become dominant, they have those capabilities, too. Q: How will Platinum’s operational focus help Kohler maintain its position as a leading energy resilience solutions provider? Louie: We plan to leverage our industry relationships and our expertise around supply chains, manufacturing and digital marketing to drive efficiency and growth. It is our view that sustainability is also a critical focus. Kohler Energy has constantly evolved, investing in alternative technologies and developing innovative products that reduce the company’s carbon footprint. We’re going to continue supporting the R&D and innovation efforts to not only remain compliant, but also remain ahead of the curve as it pertains to increasing regulatory and emission standards globally. At the same time, we have a huge amount of respect for the management team and the Kohler family. We’re going to build on and accentuate what David Kohler and his team have accomplished.
