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Year In Review: Platinum Equity navigates choppy 2023 with carveouts, deals in multiple sectors
Home / News / Year In Review Platinum Equity Navigates Choppy 2023 With Carveouts Deals In Multiple Sectors
Platinum Equity navigated a challenging year for private equity by sticking to its core investment strategies.Platinum Equity completed 51 buy and sell-side transactions in 2023, including 10 new platform investments and 28 add-on acquisitions across a variety of sectors, such as consumer, manufacturing, agribusiness and more. Deal sizes varied from the large end of the spectrum to those in the lower end of the middle market. Platinum Equity’s burgeoning credit strategy completed deals in North America that supported companies in the railway space and in the HVAC sector. Tom Gores’ and Platinum Equity’s efforts to make an impact were evident in 2023. Gores' plans include redeveloping core Detroit infrastructure and more. Portfolio companies continued investing in communities both in the U.S. and abroad. Employees from both Platinum Equity and portfolio companies participated in meaningful charitable activities. Fundamentally, we won't change. Economically, the future could see challenging times, but we believe we're set up to survive and thrive in any market. The one thing to take away in these situations is that whatever challenges come in the market, whatever comes our way, we are confident our team at Platinum Equity is ready to handle it. Tom Gores, Chairman and CEO, Platinum Equity Although the economic forecast for 2024 includes a potential soft landing, the prospect of turbulence is possible, according to The Conference Board. The agency predicts two quarters of negative growth, which will eventually be classified as a recession, to be followed by normalization. No matter the outcome, Platinum Equity believes it is prepared.“Fundamentally, we won't change,” Gores said. “Economically, the future could see challenging times, but we believe we're set up to survive and thrive in any market. The one thing to take away in these situations is that whatever challenges come in the market, whatever comes our way, we are confident our team at Platinum Equity is ready to handle it.”Here is a look back select events from 2023:Platinum Equity completes $4.6 billion take private of Diversey, combination with SolenisPlatinum Equity portfolio company Solenis acquired Diversey Holdings for $4.6 billion. Headquartered in Wilmington, Del., Solenis is a leading manufacturer of specialty chemicals used in water-intensive industries. Diversey is a provider of hygiene, infection prevention and cleaning solutions based in South Carolina. With the acquisition, Solenis has grown to an enterprise operating in more than 130 countries with 71 manufacturing facilities and more than 15,000 employees. "This is a transformational opportunity to bring together two innovative companies that have each been developing solutions for many of the world’s most pressing challenges for more than 100 years,” Platinum Equity Co-President Jacob Kotzubei said. “By joining forces, they're better positioned to accelerate the pace of progress across a wider range of high-growth end markets.”Platinum Equity closes 2 deals in 20 days, creates $1.2 billion global refractories business Despite the challenging M&A and financing markets, Platinum Equity executed a complex €930 million carve-out deal in January to acquire the Paris-based refractories business of Imerys. Just 20 days later Platinum Equity acquired HarbisonWalker International, a U.S.-based refractory business, merging the two businesses under the Calderys umbrella. “We are continuing to find attractive opportunities to put capital to work and provide divestiture solutions that deliver speed and certainty,” Platinum Equity Co-President Louis Samson said. “With HWI and Calderys, we negotiated two complex transactions in parallel with sellers in the US and Europe while formulating a plan to bring those businesses together. It was an extraordinary effort with a lot of moving parts. I’m proud of the way our teams executed.”Platinum Equity executes carveout transaction with KohlerIn late 2023, Platinum Equity and Kohler Co. announced an agreement to create a standalone company from Kohler Energy, with Platinum as the majority investment partner. Kohler will continue to stay invested in the business, which has grown during the last century to become a leader in mission-critical backup and prime power equipment, traditional and electrified powertrain technologies, and home energy solutions. Kohler said making it a separate and independent company under the guidance of Platinum Equity will position the business to take the next step in its growth. Kotzubei noted: “We appreciate Kohler’s confidence in our ability to build on its legacy and support the energy business’s continued growth and expansion as a standalone company.” Completing complex carveouts from global corporate companies is an area in which Platinum Equity has experience, having done so with Ball Corp., Caterpillar, Emerson Electric, as well as with Ingersoll Rand, Johnson & Johnson, and more. Closing is expected in the first half of 2024.Platinum Equity sells Valpak Known throughout the United States for its blue envelopes filled with coupons for consumers, Valpak, a Platinum portfolio company, was sold to AmatoMartin, a privately held investment holding company, in December. Platinum Equity acquired the company in 2017, converting the business into an omnichannel model that delivered new products and technologies from a primarily franchise-owned organization. Today, Valpak is a trusted marketing and advertising solutions provider to 34,000 businesses around the country.Partial divestitures, share sales, driving monetization Platinum Equity continued monetizing value throughout its portfolio in multiple ways throughout the year. Awaze, Europe’s leading managed vacation rentals group, closed the sale of its Landal GreenParks unit to Roompot in April. In August, Urbaser signed an agreement to sell its Nordic business as part of a continued refinement of the Madrid-based company’s portfolio. Platinum Equity also continued monetizing public shares held in former portfolio companies Vertiv, Verra Mobility and Ryerson.Gores partners on $3 billion development in DetroitGores announced plans in February to partner with Henry Ford Health and Michigan State University on a mixed-used development in Detroit’s New Center neighborhood. The sweeping project will invest $3 billion over the next decade to build residential, affordable housing, commercial and retail components anchored by a new hospital and medical research facility. Ground is expected to be broken later this year.Small Cap portfolio continues to expandIn April, the Small Cap team completed the acquisition of a majority stake in Tarter Farm and Ranch Equipment, which manufactures animal gates and fencing solutions, tractor implements, planters and fire rings, and animal feeding and handling equipment for ranchers, large institutional farms and smaller farming enthusiasts. That deal was followed by the August purchase of The HC Companies, a leading North American manufacturer of horticultural containers. The company produces a wide range of planters, pots, and accessories for the greenhouse, nursery, and retail markets, including fiber and biobased solutions produced with post-consumer and post-industrial materials to meet increasing consumer demand for sustainable solutions.Platinum Equity leverages building products experience with three new platforms in the sector In July, Platinum Equity acquired JELD-WEN’s Australasian windows and doors business. In November the firm acquired a controlling interest in Cook & Boardman, a leading specialty distributor of commercial door and security integration solutions. In December, Platinum Equity acquired a co-controlling stake in US LBM, a leading distributor of specialty building materials in the U.S. Samson said of the JELD-WEN transaction: “We are pleased to have provided a divestiture solution to JELD-WEN as the company continues to streamline and simplify its business. Platinum has decades of experience with corporate carve outs and we expect a seamless transition.” In the Cook & Boardman and US LBM transactions, both counterparties chose to partner with Platinum to accelerate growth while maintaining meaningful stakes in the businesses. Kotzubei noted: “We have a lot of experience partnering with sellers looking for additional operational capabilities to unlock growth while maintaining upside in future value creation.”Platinum Equity adds sporting equipment company in apparel sectorPlatinum Equity acquired Augusta Sportwear Brands in October, adding the sporting equipment and clothing company to firm portfolio companies in the apparel sector. ASB is a supplier of team uniforms, off-field performance wear and fan apparel for youth and recreational sports markets. Platinum Equity later merged the company with Founder Sports Group. Both companies primarily sell to regional and local team dealers and decorators who work directly with youth sports leagues, schools and corporations. Samson noted the dual acquisitions represent the first step in a planned consolidation play in the space. “We saw the potential to combine two established companies very rapidly and orchestrate a transaction that we believe leverages our unique integration and operational capabilities.”The combined ASB/FSG joins firm portfolio companies Mad Engine (licensed clothing) and Hop Lun (women’s clothing) in the apparel sector.Platinum Equity Co-President Jacob Kotzubei speaks at prestigious conferenceKotzubei joined a group of well-known investment bankers, institutional investors, politicians and others at the 26th annual Milken Institute Global Conference to discuss the keys to successfully executing transactions in a challenging environment. During the hourlong panel discussion titled Deal or No Deal in Private Equity, Kotzubei emphasized that creativity in dealmaking would win the day during these difficult times. “There is objectively less capital available for the industry,” Kotzubei said. “But there’s always capital available for people who can articulate why their strategy meets the moment.”Platinum Equity credit strategy delivers lending, financing, credit solutions In late July, Platinum Equity provided an unsecured term loan to the Tom Barrow Company in connection with Ardian’s recent acquisition of a majority stake in the business. The following month, the firm announced that it provided a second-lien term loan to Railway Equipment Leasing and Maintenance Inc. to refinance existing indebtedness and support future growth of the business. Platinum Equity’s credit strategy targets companies that generally have $15 million to $75 million in EBITDA, are primarily based in North America, and plan to use the capital infusions for a variety of uses, including acquisitions, dividends, growth financings, refinancings and recapitalizations.Platinum Equity recognizes a decade of supporting JRLAIn August, Platinum Equity celebrated its 10th year as presenting sponsor for the Jalen Rose Leadership Academy’s annual golf fundraiser. The institution is an open enrollment, tuition-free, public charter high school co-founded by former NBA star and Detroit native Jalen Rose. Gores is also a long-time supporter of the school. After opening in September 2011, the school says 97 percent of enrollees have graduated, and 100 percent of graduates have either been accepted into college or other post-secondary options. The golf event has grown to become the school’s No. 1 fundraiser. “The Platinum Equity relationship is one of love,” Rose said. “Tom Gores is like a brother to me, and that relationship has grown over more than 10 years. As I got to know Tom Gores and spend time with him, spend time with his kids, spend time with his family, suddenly, my thoughts, his thoughts, we were aligned. The dreams that we have for young people were aligned, and that made it easy.”Malibu Triathlon participation continues to raise money for pediatric cancer research More than 100 Platinum Equity representatives were involved in competing or supporting their colleagues at the 38th Annual Malibu 2XU Triathlon, a two-day event which raised more than $1 million for Children’s Hospital Los Angeles’ pediatric cancer research center. Platinum Equity raised nearly $40,000 for the event, 10th best amongst corporations. The firm’s participation in the triathlon began in 2015. Since then, Platinum Equity’s involvement has continued to grow. “This event brings team members from across the firm and the globe together and provides us the opportunity to get out of our day-to-day environment,” Platinum Equity Human Capital Principal Lindsay Calautti said. “I felt really energized after the day and I think a lot of people felt that way.” Portfolio companies give back to their communities In early 2023, Jostens debuted its new Hometown Heroes Badge of Service™ Collection that celebrated the service and sacrifices of first responders with a portion of proceeds being donated to Tunnel to Towers foundation, which provides life-changing services for veterans. The annual Club Car Championship at The Landings Golf & Athletic Club in March raised more than $400,000 in donations for Girls on the Run and other Savannah-based charitable organizations; LRG, a brand division of Mad Engine, launched its first sustainable capsule in April to honor Earth Day 2023. LRG’s Earth Day capsule utilized organic cotton and recycled materials. TruckPro announced a donation of $125,000 to charities that support veterans, children’s cancer research and underserved communities during its annual sales summit in March.
Deal Activity
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$20+ Billion of Deals in 2023; $13+ Billion in Q4 Alone An active Q4 concluded a year of carveouts, strategic add-ons and deals in multiple sectors and geographies, giving Platinum strong momentum for 2024. 2023 DEAL ACTIVITY OUR DEAL CRITERIA 2023 FACT SHEET 51 Deals in 12 Months 0 Platforms 0 Add-ons 0 Divestitures 0 Credit Deals 10 Platform Acquisitions Imerys High Temperature Solutions (Calderys) Corporate Divestiture January 2023 Industrials Tarter Farm and Ranch Equipment Private Transaction March 2023 Consumer JELD-WEN Australasia Corporate Divestiture July 2023 Building Products The HC Companies Private Transaction August 2023 Packaging The Cook & Boardman Group Private Transaction November 2023 Building Products Kohler Division Corporate Divestiture Signed November 2023 Industrials and Technology Augusta Sportswear Brands Private Transaction November 2023 Consumer US LBM * Private Transaction December 2023 Building Products E&A Scheer Private Transaction Signed December 2023 (Closed January 2024) Food & Beverage Horizon Organic & Wallaby Corporate Divestiture Signed December 2023 Food & Beverage SHOW ALL LOAD MORE 28 Add-Ons Featured Add-Ons HarbisonWalker International (Imerys) February 2023 Diversey (Solenis) March 2023 28 Add-Ons Featured Add-Ons HarbisonWalker International (Imerys) February 2023 Diversey (Solenis) March 2023 9 Divestitures Featured Divestitures Landal (from Awaze) April 2023 ValPak November 2023 9 Divestitures Featured Divestitures Landal (from Awaze) April 2023 ValPak November 2023 9 Divestitures Featured Divestitures Landal (from Awaze) April 2023 ValPak November 2023 9 Divestitures Featured Divestitures Landal (from Awaze) April 2023 ValPak November 2023 4 Credit Deals - M&A Financing - Unsecured Term Loan - Provider of manufacturers' representation services to the commercial HVAC industry - Refinancing - Second Lien Senior Secured Term Loan - Maintenance-of-way rail equipment rental provider - Strategic Acquisition Financing - Unsecured Term Loan - Manufacturer of specialty pumps for use in numerous liquid-handling applications - M&A Financing - First Lien Senior Secured Term Loan - Wholesale distributor of vinyl products to sign shops and auto restylers Deal activity reflects private equity and private credit buy and sell-side transactions signed or closed between January 1, 2023 – December 31, 2023, excluding the sale of publicly traded shares in previously divested portfolio companies. Dollar amounts reflect aggregate total enterprise value of all private equity transactions and actual capital invested for private credit transactions. For illustrative purposes, Featured Add-ons and Featured Divestitures do not represent all Platinum Equity transactions during the period. 13 Industries IN 12 MONTHS Aerospace Building Products Business Services Chemical Consumer Distribution Education Services Equipment Rental Hospitality Industrials Media & Entertainment Technology Transportation & Mobility Our Deal Criteria Platinum Equity seeks to acquire businesses spanning a wide range of industries, sizes and geographies that can benefit from our highly specialized M&A&O® strategy. download an intro to platinum Private Equity Acquisition Profile Businesses with enterprise values from $100 million to $10 billion All industries All geographies Private Equity Transaction Capabilities Corporate divestitures Public-to-private transactions Private transactions Special situations Private Credit Investment Profile Debt capital for acquisitions, dividends, growth financings, recapitalizations, and refinancings Variety of credit types, including first lien senior secured, second lien senior secured, unsecured, and subordinated Businesses with $15 to $75 million of EBITDA Primarily based in North America Featured Stories View Stories Entertainment Year In Review: Platinum Equity navigates choppy 2023 with carveouts, deals in multiple sectors Platinum Equity navigated a challenging year for private equity by sticking to its core investment strategies. Read More » Platinum Equity’s acquisition of Tarter Farm and Ranch another example of ability to tailor solutions for founder-owned businesses seeking outside investment Tarter Farm and Ranch Equipment is a well-known brand that provides mission-critical products for farmers and ranchers in the U.S. The co... Read More » As headwinds sidelined strategic buyers, Platinum stepped up to deliver speed and certainty for Calderys carveout and HarbisonWalker add-on By offering a creative financing solution for the combined consideration of $1.2B and by negotiating advantageous contractual terms, Plati... Read More » Platinum Equity, Solenis executives: Diversey merger creates broader, more global platform Announced earlier this year, Solenis has formally acquired Diversey in an all-cash transaction valued at $4.6 billion. Read More » Year In Review: Platinum Equity marks an impactful 2022 with new platforms, 61 add-ons, ESG strides and philanthropic outreach After a record-breaking 2021 for M&A, deal activity slowed globally in 2022. The reasons for the slowdown are well-reported, but it was st... Read More » How commitment and resources drive Platinum Equity’s European momentum The ability to execute European-headquartered global, pan-European, and domestic complex deals speaks to Platinum Equity’s commitment an... Read More » Why Platinum Equity likes ‘high velocity M&A’ opportunity in UK property services market Acquisition of Leaders Romans Group amplifies European momentum because of its place in the UK property market Read More » 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 partnerships Read More » Platinum Equity lands largest deals in firm history to highlight bustling 2021 Platinum produces landmark year featuring 17 deals valued at more than $1 billion each, with investments in familiar sectors, industry lea... Read More » Pelican Products brings strong brand loyalty, new sector to Platinum Equity portfolio In Q&A, firm executives explain opportunities for growth with Pelican’s durable, well-received protective cases Read More » Why Solenis, Sigura Water $6.5 billion merger is a good fit for Platinum Equity Platinum Equity executives explain the path forward after $5.25 billion investment in Solenis Read More » $4.2 billion Urbaser deal adds to Platinum Equity’s European momentum Managing Director Igor Chacartegui talks about the importance of trust, relationships and ESG in Platinum’s latest European buyout Read More » Why Platinum Equity believes in SVP Worldwide's efforts to make ‘sewing more accessible’ The maker of Singer sewing products has capitalized on a growing market by attracting Millennials, shift to machines in developing countri... Read More » How potential for ‘digital transformation’ is a main reason for Platinum Equity’s $4.5 billion acquisition of McGraw Hill Platinum Managing Director Luke Myers explains how McGraw Hill’s future is tied to growth of digital learning Read More » ‘Opportunity for significant upside’ driving force behind Custom Truck One Source-Nesco merger Platinum satisfies multiple constituents to create one-stop provider of specialty rental equipment to meet growing infrastructure demands Read More » Year in review: Platinum Equity delivers landmark 2020 with adaptability, execution In trying to describe 2020, words do not come easy. Unforgettable does not cut it. Catastrophic does not consider the resilience shown by ... Read More » Why Platinum Equity’s $7.2 billion agreement to acquire Ingram Micro represents a ‘new frontier’ for firm Platinum officials explain the future and potential of tech industry leader that is firmly entrenched on Fortune 100 list. Read More » Why Platinum Equity acquired Italian winemaker in spite of COVID-19 challenges The April 6 issue of Axios' daily dealmakers newsletter called Platinum Equity's acquisition of Farnese Vini the day's most notable transa... Read More » How Platinum Equity’s Small Cap team has put experience and capital to work during COVID-19 crisis Theater goers have not exactly flocked back to movie houses in the U.S. Read More » 2 1 Featured Videos Contact Us [contact-form-7 id="6876" title="Deal Activity Form"] * US LBM is equally owned and controlled with funds managed by Bain Capital. For illustrative purposes, Featured Add-ons and Featured Divestitures do not represent all Platinum Equity transactions during the period.
Platinum Equity to Sell Hunterstown Power Generation Facility to LS Power
Home / News / Platinum Equity To Sell Hunterstown Power Generation Facility To Ls Power
LOS ANGELES (Jan. 16, 2024) – Platinum Equity announced today the signing of a definitive agreement to sell the Hunterstown power generation facility and related assets to LS Power. Financial terms were not disclosed. The transaction is expected to close in the second quarter of 2024. Located in Gettysburg, Pennsylvania, the Hunterstown facility is a combined-cycle gas turbine generating power plant that provides 810 MW to the PJM (Met-Ed) 500kV grid, with enough to supply more than 600,000 homes. “Hunterstown is an outstanding asset that has benefited from meaningful investment under our watch and has performed well operationally during our ownership,” said Platinum Equity Co-President Louis Samson. “It serves PJM, the largest electricity market in the United States, and has generated strong recurring revenue.” Samson noted that Hunterstown’s debt structure also made it attractive to prospective buyers. “We included a portability feature in our debt financing when we acquired the business that has proven helpful to getting a deal done in this tumultuous financing environment,” added Samson. “We believe this is another example of how our approach can create value across the full lifecycle of an investment, and how our transaction knowhow and ability to navigate choppy M&A and financing markets works to our advantage.” Platinum Equity acquired the facility in 2018 from GenOn, a unit of NRG Energy Inc. (NYSE: NRG), which had filed for bankruptcy protection in June 2017. We believe this is another example of how our approach can create value across the full lifecycle of an investment, and how our transaction knowhow and ability to navigate choppy M&A and financing markets works to our advantage. Louis Samson, Co-President, Platinum Equity "The Hunterstown investment represented an opportunistic way for us to create value in a sector that was experiencing dislocation and to put our toolkit to work for the benefit of the stakeholders involved,” said Platinum Equity Managing Director David Glatt. “We delivered a solution to a seller in need at a time of distress and provided strong operational stewardship to the business. We have now found a new home for the asset with a highly-experienced buyer. We believe that’s a win for everyone.” Evercore is serving as financial advisor to Platinum Equity on the sale of Hunterstown and Latham & Watkins LLP is providing legal counsel to Platinum Equity. About Platinum Equity Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 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 Acquires Premium Rum Blending Specialist E&A Scheer
Home / News / Platinum Equity Acquires Premium Rum Blending Specialist Ea Scheer
LOS ANGELES (Jan. 11, 2024) – Platinum Equity announced today the acquisition of premium rum blending specialist E&A Scheer, the largest global blender and vendor of premium rum in bulk, from The Riverside Company. Financial terms of the transaction were not disclosed. Headquartered in Amsterdam, Netherlands, E&A Scheer’s origins date back to 1712. The company specializes in sourcing and blending to create high-quality, custom-made rum blends for business-to-business customers. The company’s blending operation is located at its Amsterdam headquarters. Its aging facilities, including subsidiary The Main Rum Company, are located in Liverpool, United Kingdom. “E&A Scheer has built an impressive legacy over more than 300 years and today plays a unique and essential role in the global rum market,” said Platinum Equity Co-President Louis Samson. “We believe the rum category has promising prospects driven in part by the increasing popularity of new craft brands and the trend toward premiumization. We are excited to help the company capitalize on these opportunities by investing in the company’s continued success.” E&A Scheer serves a broad and diverse range of customers who rely on the company’s value-added service offering, which includes production of premium multi-source rum blends, access to ultra-premium rare and aged single casks, and creation of custom-made concept bottles. “E&A Scheer’s scale and unique position in the value chain make it an attractive platform for growth, both organically and through prospective additional acquisitions,” said Platinum Equity Managing Director Fernando Goni. “With our financial and operational resources, we see a lot of runway for E&A Scheer’s continued growth and intend to support it via international expansion and M&A. We are excited to partner with the company’s experienced leadership team on the next chapter.” E&A Scheer sources rum from over 60 suppliers across more than 40 countries, and holds vast stocks of aged inventory, which allows its master blenders to develop rum blends for any age, style or price point. The company believes it is a crucial player in the premium rum market that can deliver bespoke multi-source rum blends with consistent high quality in any desired quantity with a lead time of only 10 days from order to shipment. We believe the rum category has promising prospects driven in part by the increasing popularity of new craft brands and the trend toward premiumization. We are excited to help the company capitalize on these opportunities by investing in the company’s continued success. Louis Samson, Co-President, Platinum Equity “We look forward to working with the Platinum Equity team and are confident they will be a great partner,” said E&A Scheer CEO Maarten Obbink. “We believe Platinum’s resources, experience and global reach will benefit our efforts to continue growing and expanding our business.” The E&A Scheer investment was led by Platinum Equity’s Small Cap investment team, which is experienced in acquiring businesses in Europe and in the food and beverage sector in particular. Platinum Equity’s current portfolio includes Ortona, Italy-based Fantini Wines. DC Advisory served as financial advisor and Latham & Watkins LLP served as legal advisor to Platinum Equity on the acquisition of E&A Scheer. About Platinum Equity Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 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. Photo: Provided by E&A Scheer
Platinum Equity Acquires Augusta Sportswear Brands and Founder Sport Group
Home / News / Platinum Equity Acquires Augusta Sportswear Brands And Founder Sport Group
Youth sports performance apparel businesses joining forces to create expanded portfolio of brand, product and service offeringsLOS ANGELES (January 9, 2024) – Platinum Equity announced today the acquisitions of Augusta Sportwear Brands (“ASB”) and Founder Sport Group (“FSG”). Both companies are suppliers of team uniforms, and off-field performance wear and fan apparel for the youth and recreational sports markets.Financial terms of the private transactions were not disclosed.“Youth sports play an important role in society and participation has been shown to provide important psychological and social health benefits,” said Platinum Equity Co-President Louis Samson. “The core market for youth sports apparel and accessories has grown steadily over the past decade, but the ecosystem is highly fragmented and, in many ways, inefficient. We saw the potential to combine two established companies very rapidly and orchestrate a transaction that we believe leverages our unique integration and operational capabilities with the goal of improving those industry dynamics and ultimately bringing to life a better customer experience.“This complex transaction is another example of how Platinum’s creativity and out-of-the-box approach to M&A helps us find opportunities to create value even in choppy or dislocated markets,” added Samson.Apparel suppliers like ASB and FSG primarily sell to regional and local team dealers and decorators who work directly with youth sports leagues, schools and corporations.ASB’s current portfolio comprises a comprehensive line of complementary and versatile brands, including: Augusta Sportswear, Holloway, High Five, Pacific Headwear, Russell Athletic and CCM. FSG goes to market with a diverse portfolio of brands including: Under Armour, Badger, Alleson, C2, ProSphere, Garb Athletics and Flash. This complex transaction is another example of how Platinum’s creativity and out-of-the-box approach to M&A helps us find opportunities to create value even in choppy or dislocated markets. Louis Samson, Co-President, Platinum Equity The integrated portfolio of brands will allow the combined company to serve the full range of on-field and off-field or fanwear needs of youth sports teams, clubs, schools and leagues.“We believe bringing ASB and FSG together will create meaningful benefits for the company’s customers, end consumers, and the youth sports apparel industry as a whole,” said Platinum Equity Managing Director Jason Price. “Joining forces will create an expanded portfolio of brand and product offerings across the full sports and lifestyle apparel industry. It will make more brands available to more consumers in more communities.”Both companies have made significant investments in sublimation printing, an ink-on-fabric technology that provides better image quality and customization, with quick turnarounds to meet customer needs.“We believe that over time, integrating the two companies has the potential to further reduce customer turnaround times, create a more efficient supply chain, and accelerate the impact of sublimation and other technologies throughout the ecosystem,” added Price. “We have a lot of experience with apparel businesses and are excited about the opportunities ahead.”In 2020, Platinum Equity acquired Mad Engine, a premier omnichannel provider of licensed, branded and private-label apparel and accessories. In 2022, the firm acquired international apparel company Hop Lun. Jostens, a trusted partner in the academic and achievement channel serving the K-12 educational, college and sports segments, is also a current Platinum Equity portfolio company.Business is expected to continue as usual for both companies as they work together with Platinum Equity on transition and integration plans. Latham & Watkins provided legal counsel to Platinum Equity on the acquisitions of ASB and FSG.About Platinum EquityFounded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 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 Augusta Sportswear BrandsAugusta Sportswear Brands is a leading designer, manufacturer, and marketer of high-performance uniforms, training apparel, and fanwear for teams, coaches, athletes, and fans. Made up of five brands, Augusta Sportswear, Holloway, Russell Athletic, Pacific Headwear, and High Five, all driven by a simple mission to inspire a physically fit lifestyle, creating more healthy families and connected communities everywhere they operate.
Platinum Equity to Acquire Horizon Organic and Wallaby from Danone
Home / News / Platinum Equity To Acquire Horizon Organic And Wallaby From Danone
Leading dairy products brands projected to benefit from Platinum Equity’s carve-out experience and operational expertiseLOS ANGELES (Jan. 1, 2024) – Platinum Equity today announced the signing of a definitive agreement to acquire Horizon Organic and Wallaby from Danone.Horizon Organic is the largest USDA-certified organic dairy brand in the world and is a pioneer in dairy beverages, having introduced the first organic milk available coast to coast in the United States in 1991. Horizon Organic’s portfolio of organic dairy products includes milk, creamers and whiteners, yogurt, cheese and butter.The proposed acquisition also includes the Wallaby brand, an Australian-inspired Greek-style yogurt made with organic milk and premium ingredients.“Horizon Organic is an iconic name in dairy that is well recognized and beloved by consumers,” said Platinum Equity Co-President Louis Samson. “The brand has earned a reputation for quality and innovation that is unmatched in the industry. We appreciate Danone’s confidence in our ability to build on that legacy and support Horizon Organic’s growth as a standalone company.”The US dairy category is estimated at $68 billion with milk comprising approximately $17 billion of that total. “Premium offerings, including organic and value-added products, are driving the growth in the dairy milk category,” said Platinum Equity Managing Director Adam Cooper. “Horizon Organic is a pioneer of that segment and is in position to continue capitalizing on and accelerating the trend.” Horizon Organic is an iconic name in dairy that is well recognized and beloved by consumers. The brand has earned a reputation for quality and innovation that is unmatched in the industry. We appreciate Danone’s confidence in our ability to build on that legacy and support Horizon Organic’s growth as a standalone company. Louis Samson, Partner, Platinum Equity Platinum Equity has decades of experience acquiring and operating global businesses that have been part of large corporate entities. The firm recently announced the pending acquisition of Kohler Energy from Kohler Co. In recent years Platinum Equity has also acquired businesses from firms like Ball Corporation, Caterpillar, ConAgra, Emerson Electric, Ingersoll Rand and Johnson & Johnson, among others.“We are excited about Horizon Organic’s potential as an independent business with a renewed sense of focus and a commitment to investing in its success,” said Cooper. “We have a lot of experience supporting food and beverage businesses. We look forward to partnering with Horizon Organic’s management team to ensure a seamless transition and chart a path for continued growth and expansion.”Platinum Equity’s current portfolio includes Biscuit International, a European manufacturer of private-label sweet biscuits, wine producer Fantini Group Vini and seafood provider Iberconsa. Previous Platinum Equity investments include JM Swank, a food ingredients distributor acquired from ConAgra, and Harvest Meat Company, a US distributor of packaged meat and bakery products.The proposed acquisition of Horizon Organic and Wallaby is subject to customary closing conditions and regulatory approval.Morgan Lewis is serving as legal advisor and Alston & Bird is serving as debt financing counsel to Platinum Equity.About Platinum EquityFounded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 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 Danone (www.danone.com)Danone is a leading global food and beverage company operating in three health-focused, fast-growing and on-trend categories: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition. With a long-standing mission of bringing health through food to as many people as possible, Danone aims to inspire healthier and more sustainable eating and drinking practices while committing to achieve measurable nutritional, social, societal and environment impact. Danone has defined its Renew strategy to restore growth, competitiveness, and value creation for the long-term. With 100,000 employees, and products sold in over 120 markets, Danone generated €27.7 billion in sales in 2022. Danone’s portfolio includes leading international brands (Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others) as well as strong local and regional brands (including Aqua, Blédina, Bonafont, Cow & Gate, Mizone, Oikos and Silk). Listed on Euronext Paris and present on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading sustainability indexes including the ones managed by Moody’s and Sustainalytics, as well as the Ethibel Sustainability Index, the MSCI ESG Indexes, the FTSE4Good Index Series, Bloomberg Gender Equality Index, and the Access to Nutrition Index. Danone’s ambition is to be B-Corp certified at global level in 2025.About Horizon Organic®Horizon Organic has been producing great-tasting organic milk since 1991. From the start, Horizon has remained committed to protecting a healthy planet and hasn't stopped working toward raising the bar as a leading organic milk producer in the U.S. In 2017, Horizon Organic became a brand of Danone North America. Today, Horizon works with more than 600 family farmers across the U.S. For more information on Horizon's full portfolio of organic dairy products, visit Horizon.com.
Cabinetworks Group introduces new $8 million corporate headquarters, brings 110 new jobs to Detroit suburb
Home / News / Cabinetworks Group Introduces New 8 Million Corporate Headquarters Brings 110 New Jobs To Detroit Suburb
LIVONIA, Mich. - With various local and state officials on hand, Cabinetworks Group officially opened its new $8 million corporate headquarters in December. CEO John Barkhouse and Chief Human Resource Officer Jo Ann Morelli did the honors, cutting the red ribbon in front of employees assembled over two floors on the site that was once a call center for a local healthcare company. Cabinetworks Group previously resided in an oversized and aging office space in nearby Ann Arbor. “The buzz around this building in the last two months is just night and day difference from how it was in in our old location,” Barkhouse said in his office after the ribbon-cutting ceremony. “The building we were previously in was large, old and not very conducive to collaborating. “We designed this space with the idea that we wanted people to work together, we wanted them to work in new, collaborative ways to really capitalize on the benefits of the building.” Cabinetworks is driving $14.2 million of investment and creating 110 good jobs in southeast Michigan, underscoring the strength of our talented workforce and building on our economic momentum. Gretchen Whitmer, Governor, Michigan The ribbon-cutting was mostly ceremonial since employees have been working at the site for two months, but with more than 90,000 square feet of office space featuring the latest technology, the building serves as a central hub for the cabinetry manufacturer and contributes to infrastructure growth for the Detroit suburb. The building currently houses 240 employees, ranging from customer care support to business operations jobs. Morelli said the building can house up to 280 employees. Because of the addition of new employees and job training programs, the move qualified for state assistance. In August, Michigan Gov. Gretchen Whitmer and Michigan officials announced that the move adds 110 corporate and professional service jobs to Livonia. The state awarded the company a $600,000 grant as part of the expansion. “Cabinetworks is driving $14.2 million of investment and creating 110 good jobs in southeast Michigan, underscoring the strength of our talented workforce and building on our economic momentum,” Whitmer said in the release announcing the move. “We’re pleased to support Cabinetworks’ expansion in Livonia and look forward to working with the company as it continues to grow here and add jobs for Michiganders. Together, we can continue to send a clear message that everyone is welcome to make it in Michigan.” Although other cities around the state were considered for relocation, Cabinetworks Group never considered leaving Michigan. “Our history is here, Michigan has always been our home,” Barkhouse said. “We felt by moving to this area, it could improve our ability to attract local talent.” Members of the Platinum Equity operations team toured the facility shortly before the ribbon cutting. The team observed a modern facility equipped with state-of-the-art technological communal rooms and cordless desks. It’s a progressive space with working moms having access to lactation rooms on every floor. There is a fully equipped gym with full-sized locker rooms. There are multiple fully functionable concept kitchens to bring the headquarters into the 21st century. Livonia, the eighth largest city in Michigan, is located roughly 20 miles northwest of downtown Detroit. “This community is well-built, and it really has everything for everyone,” Morelli said. “I’m a Michigander and I love that Livonia is as strong on the map as it is, and it is so welcoming to companies like Cabinetworks to grow and thrive here.” Cabinetworks is the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the U.S. The company currently has more than 8,000 employees nationwide. Platinum Equity acquired Cabinetworks in 2021.
Platinum Equity Portfolio Company Hop Lun Acquires Rainbow West Apparel
Home / News / Platinum Equity Portfolio Company Hop Lun Acquires Ranbow West Apparel
LOS ANGELES and HONG KONG (Dec. 18, 2023) – Platinum Equity portfolio company Hop Lun, one of the world’s largest designers and manufacturers of undergarments and swimwear, announced today the acquisition of Rainbow West Apparel (“RW Designs”), a woman and minority-owned swimwear company based.Founded in 1993 as a family-owned business, RW Designs is a Los Angeles-based company that has served as a premier private label design house and manufacturer for 30 years.“Since we first joined forces with Platinum Equity, we have been seeking opportunities to better serve retail partners in the US market,” said Hop Lun Founder and CEO Erik Ryd. “Partnering with Esther and the RW team is an important part of that strategy. This combination will allow us to offer RW Designs’ sample and design capabilities to our customers, which is a great benefit for those who want more flexibility and shorter lead times.”With roots in both swimwear and outerwear, RW Designs also has meaningful experience across multiproduct categories including intimates, activewear and loungewear. Since its founding, RW Designs has provided unique offerings to the marketplace at competitive price points and has worked with a diverse range of companies to identify market opportunities for growth. We believe Hop Lun is proving to be an excellent platform with multiple ways to evolve and expand, 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, Platinum Equity "The RW team and I are excited to join Hop Lun. We look forward to leveraging Hop Lun's vast resources and manufacturing scale throughout several countries of origin to provide even better and broader services and consistency to our customers,” said RW Designs Co-Founder and CEO Esther Maya. “We are thrilled at the prospect of creating a vertical opportunity for buyers alongside of a hybrid model, allowing for more flexibility with inventory needs.”Based in Hong Kong, Hop Lun employs more than 26,000 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.“We believe Hop Lun is proving to be an excellent platform with multiple ways to evolve and expand,” 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 RW Designs. Montminy & Co served as financial advisor and the Law Office of Christen Bartelt provided legal counsel to RW Designs on the transaction.About Platinum EquityFounded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 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 apparel, and is the largest global provider of bra solutions. It employs over 26,000 people across its global operations in Bangladesh, Indonesia, China and Hong Kong.About RW Designs For over 30 years, RW Designs has served as a premier private label design house and manufacturer in Los Angeles. RW Designs embodies feminism, diversity and provides flattering, price point designs for anyone and everyone interested in feeling comfortable in their body.
BlueCrest introduces OttoMate, a collaborative robot, which aims to increase productivity and reduce labor-intensive tasks in mailrooms
Home / News / Bluecrest Introduces Ottomate A Collaborative Robot Which Aims To Increase Productivity And Reduce Labor Intensive Tasks In Mailrooms
BlueCrest recently unveiled OttoMate, its first collaborative robot, which is engineered to work alongside human workers to automate various tasks in the mailing industry. In response to prevailing labor challenges in the mailing market, which include high turnover rates causing disruptions in recruitment, BlueCrest developed OttoMate. “With the introduction of OttoMate, we hope to leverage our intellectual property and industry know-how to bolster productivity on the client’s production floor,” BlueCrest Chief Technology Officer Steve Varga said in a release. The initial offering is the OttoMate Trayer, which is designed to handle the labor-intensive task of moving finished mail from an inserter to a U.S. Postal Service mail tray and placing the tray onto a conveyor system. OttoMate is programable, helping workers with traditionally manually intensive tasks. OttoMate integrates with BlueCrest equipment control systems to allow for an efficient workflow, enhancing overall operational synergy. By managing repetitive manual processes, the technology increases time management for workers to concentrate on other tasks. Additionally, BlueCrest emphasizes the importance of refining specific processes such as tray filling, enabling businesses to increase the number of envelopes in each tray, overall improving productivity levels. Acting as a workplace companion, the robot executes tasks and remains operational around the clock. Its commitment to tasks ensures a continuous workflow, eliminating downtime and optimizing productivity for businesses. “As the world progresses towards the digitization of manufacturing, this transformation has become recognized as the Fourth Industrial Revolution (or Industry 4.0),” Varga said. “By introducing OttoMate as a go-forward work cell automation platform, we believe we are enabling our clients to embrace and realize the benefits of Industry 4.0 methodologies within their own mail production environment.” BlueCrest is an original equipment manufacturer in postal, parcel, e-commerce and customer communication businesses. Platinum Equity acquired Pitney Bowes’ production mail business and supporting software in 2018 for $361 million. The business was later rebranded BlueCrest.
Platinum Equity Sells Valpak to AmatoMartin
Home / News / Platinum Equity Sells Valpak To Amatomartin
LOS ANGELES (Dec. 4, 2023) – Platinum Equity announced the sale of marketing and advertising solutions provider Valpak to AmatoMartin, a privately held investment holding company. Valpak, based in St. Petersburg, Florida, is a leader in omnichannel media and direct marketing solutions for local businesses and national brands. The company is trusted by 34,000 businesses to drive lead generation and brand awareness through direct mail and digital advertising solutions. Valpak will join Clipper Magazine in AmatoMartin’s portfolio. Platinum Equity acquired Valpak as a corporate carveout from Cox Media Group in 2017. Under Platinum Equity’s stewardship, Valpak invested in new growth initiatives and worked with the management team to transform the business from primarily a franchise-owned marketing organization to an omnichannel model focused on delivering new products and technologies to the market. As a result of the collective efforts, Platinum Equity believes Valpak is well positioned for success as part of the AmatoMartin/Clipper team. Solomon Partners served as exclusive financial advisor and Squire Patton Boggs, LLP served as legal advisor to Valpak. Salem Partners served as financial advisor to AmatoMartin. About Platinum Equity Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 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 Valpak Valpak is the nation's premier direct mailer, trusted for more than 55 years by thousands of local and national businesses. We drive sales and brand awareness through easy-to-measure, results-oriented advertising solutions that work. Our network of nearly 140 local offices provides unparalleled customer service and market knowledge to business owners in 42 U.S. states. Each month, our Blue Envelope of savings mails to more than 41 million demographically targeted households, and we offer a diverse suite of additional, fully customizable solutions driven by best-in-class data and targeting capabilities. Contact us today at valpak.com/advertise or connect on Twitter: @Valpak and Facebook: @ValpakAdvertising.
