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2024 Global Operations Conference September 11-13, 2024 Ritz-Carlton Marina Del Rey 4375 Admiralty Way Marina Del Rey, California RSVP [contact-form-7 id="ecc99f3" title="Ops Conference 2024"] Event Details The conference will begin with a Welcome Reception the evening of Wednesday September 11th and conclude late afternoon Friday September 13th. Attire: Business Casual Evening events may take place outdoors. Layers are recommended. Click RSVP to confirm your attendance Contact Us Should you have any questions or prefer to RSVP by phone or email, please contact your team EA or email OpsConference@platinumequity.com
Kohler Co. and Platinum Equity Close Transaction to Establish Kohler Energy as Independent Business
Home / News / Kohler Co And Platinum Equity Close Transaction To Establish Kohler Energy As Independent Business
KOHLER, Wis. – May 6, 2024 – Kohler Co. and Platinum Equity announced today the companies have closed the transaction to establish Kohler Energy as a separate, independent business. Platinum Equity is now the majority owner of the Energy business and Kohler Co. remains an investment partner. Financial details are not being disclosed. Kohler Energy is strategically positioned to continue strong performance in the global energy resilience marketplace, now operating as a standalone company outside of Kohler Co. Brian Melka is CEO of the Energy business, elevating his leadership role after more than 10 years working at Kohler and driving the group’s growth and success. David Kohler serves on its Board of Directors. “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,” said David Kohler, Chair and CEO of Kohler Co. “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.” 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. 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 Brian Melka, CEO of Kohler Energy, added: “We are excited for this next phase of Kohler Energy with Platinum Equity as a partner. The demand for resilient energy is growing, and the world needs much more of what we do. Kohler has been an excellent steward of our business for more than 100 years, and this decision positions Kohler Energy to better deliver on that demand. Platinum Equity firmly supports our growth path ahead and can help further accelerate our progress in the global energy resilience industry.” Platinum Equity is a global investment firm with more than $48 billion of assets under management and is an experienced partner in the industrial products sector. “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,” said Platinum Equity Co-President Jacob Kotzubei. “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.” “The energy resilience business has an outstanding leadership team, dedicated employees and an opportunity to capitalize on the tailwinds driving demand for reliable power solutions for individuals, businesses, and communities around the world,” said Platinum Equity Managing Director Matthew Louie. “We are thrilled to work with Brian and the management team to continue investing in the company’s human capital, infrastructure, customer and vendor partnerships, and growth.” About Kohler Co. For more than 150 years, Kohler Co. has been a global leader in bold design and innovation, dedicated to helping people live gracious, healthy, and sustainable lives through its kitchen and bath products; luxury cabinetry, tile, and lighting; wellness products and services; and luxury hospitality experiences and major championship golf. Privately held Kohler Co. was founded in 1873 and is headquartered in Kohler, Wisconsin. The company also develops sustainable living solutions to enhance the quality of life for current and future generations. Its Innovation For Good platform addresses pressing issues, such as clean water and safe sanitation, with breakthrough products and services for underserved communities. David Kohler serves as Chair and CEO and represents the fourth generation of Kohler family leadership. About Kohler Energy Kohler Energy provides solutions across Home Energy, Industrial Energy Systems, and Powertrain Technologies. Leveraging the strength of its portfolio of brands – Power Systems, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Heila Technologies, Curtis Instruments, and Engines, and more than a century of industry leadership, Kohler Energy builds resilience when the grid cannot and goes beyond functional, individual recovery to create better lives and communities. For more details, please visit kohlerenergy.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. Contacts: Todd Weber Kohler Co. todd.weber@kohler.com Patrick Rose Weber Shandwick prose@webershandwick.com
Custom Truck One Source Wins Capstone Real Estate Award
Home / News / Custom Truck One Source Wins Capstone Real Estate Award
KANSAS CITY, Mo. - Custom Truck One Source, Inc. (NYSE: CTOS) was recently recognized with a Capstone Award by the Kansas City Business Journal for the Company’s $35 million renovation of a 220,000-square-foot warehouse located on the former site of Kansas City’s Armco Steel plant, which is now part of Custom Truck’s 175-acre headquarter campus.The renovated building was part of the historic factory that closed in 2001 and which is now undergoing an overall adaptive reuse transformation. Custom Truck revamped the building to house its Fabrication & Crane Manufacturing; Paint & Powder Coating; and Parts, Tools and Accessories departments.The site, which has been used by various manufacturers since the late 1800s, was taken over by Armco Steel in 1930 and approximately 4,500 were employed at the plant’s century-old warehouses, including Building H, during its peak usage in the 1950s.Today, Custom Truck employs close to 1,000 people on its overall headquarters site and executives expect to add approximately 100 positions at Building H this year, including machinists, welders, painters, assemblers, and materials operators.The work is part of an ongoing renovation of Custom Truck’s campus, which Company founder Fred Ross and his family purchased in 2005. Since then, Custom Truck has grown from 250 employees and one location to a leading North American specialty truck and heavy equipment provider with more than 2,500 employees in nearly 40 facilities.Custom Truck last won a Capstone award in 2019 for the renovation of a 119,000-square-foot production facility also from the early 1900s.ABOUT CUSTOM TRUCK ONE SOURCECustom Truck One Source is one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America, with a differentiated “one-stop-shop” business model. CTOS offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets, including electric lines, telecommunications networks and rail systems. The Company's coast-to-coast rental fleet of more than 10,300 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories. For more information, please visit customtruck.com.
Facility designed to manufacture electric, street-legal Club Car Urban unveiled in Georgia
Home / News / Facility Designed To Manufacture Electric Street Legal Club Car Urban Unveiled In Georgia
APPLING, Ga. - With elected officials and area business leaders on hand, Club Car officially opened its new manufacturing facility recently with a ribbon-cutting ceremony. Club Car CEO Mark Wagner and Georgia Governor Brian Kemp did the honors, cutting the ceremonial ribbon in front of employees and community members who assembled outside the 105,000 square-foot flexible production and warehouse space that the vehicle manufacturer opened to produce the fully electric, street legal Club Car Urban for the United States. “Club Car is bringing jobs into Georgia in the growing e-mobility sector and leading the way in compact utility EV manufacturing,” Governor Kemp said. Following the ceremony, attendees toured the state-of-the-art facility to learn about the Club Car Urban and witness the production line that can produce up to 20 vehicles per day. There is currently one production line with 13 stations and room to add two more lines if needed. The facility was opened to address expected increased demand in the U.S. for the Club Car Urban. Club Car has committed nearly $8 million in capital investments into the facility over two years.“We are excited to share how our innovative vehicles are impacting commercial fleet electrification, mini-mobility and last mile delivery,” Wagner said. “As a Georgia-based company for more than sixty years, we are proud of the quality, safety and reliability that our team builds into every Club Car product.” Club Car Urban vehicles are electric and street-legal, and designed to navigate large campuses, last mile delivery, municipalities, and hospitality spaces.Before the facility’s opening, customers had to order the Club Car Urban and wait for it to be built and then shipped overseas from Poland. 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.
TAK Communications
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TAK Communications Private Transaction North America Active Industrials Media & Telecom A national provider of communications and broadband infrastructure services Company Overview A leading provider of fiber and broadband network services, last-mile connectivity, and on-premise technology deployment solutions for the broadband and telecommunications industries across the US. Transaction Description Acquired in February 2024 States with Offerings 40+ Years in Business 20+ 4401 S Technology Drive Sioux Falls, SD 57106 takcommunications.com A national provider of communications and broadband infrastructure services Company Overview A leading provider of fiber and broadband network services, last-mile connectivity, and on-premise technology deployment solutions for the broadband and telecommunications industries across the US. States with Offerings 40+ Transaction Description Acquired in February 2024 Years in Business 20+ 4401 S Technology Drive Sioux Falls, SD 57106 takcommunications.com Photo Gallery Previous Next × × × × Latest Article Platinum Equity’s outreach program for the Jalen Rose Leadership Academy provides mentorship, scholarships. And genuine fun. April 15, 2024 DETROIT – Roaring laughter - and a little friendly trash talk - was heard in the Little Caesars Arena interview room only minutes before the start of the Detroit Pistons game against the Indiana Pacers on March 20. Jalen ...Read More Latest Article Latest Article How Winc management team, Platinum Equity ops ‘rose to the occasion’ to pull off turnaround for customers in Australia, New Zealand April 03, 2024 SYDNEY – The distribution center west of Australia’s largest city is operating efficiently on the warm September day.Winc Supply Chain Director Chris Fox proudly takes visitors by rows of empty pallets neatly stacked near...Read More Latest Article Latest Article Platinum Equity Completes Acquisition of Horizon Organic and Wallaby from Danone April 02, 2024 Leading dairy products brands projected to benefit from Platinum Equity’s carve-out experience and operational expertise LOS ANGELES (April 2, 2024) – Platinum Equity today announced that the acquisition of a majority ...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 Partner Mark Barnhill, Detroit Pistons host second-chance event in Detroit
Home / News / Platinum Equity Partner Mark Barnhill Detroit Pistons Host Second Chance Event In Detroit
DETROIT - An event co-sponsored by the Detroit Pistons, the NBA and a variety of government and support organizations aimed to give more than 170 formerly incarcerated citizens a second chance through legal assistance and job counseling.The Second Chance Summit in Detroit included a clinic, in which volunteer lawyers helped eligible individuals apply for expungement of their criminal records under Michigan’s 2021 Clean Slate Act; and a job fair in which employers and counselors offered assistance connecting applicants with employers willing to hire the formerly incarcerated. Later in the afternoon, panel discussions featuring experts on the topic offered more insight into the issue.Among the hosts of the event was Mark Barnhill, who represents Tom Gores’ ownership team with the Pistons, and is one of Gores’ partners at Platinum Equity, the global investment firm that Gores founded and leads.The barriers to successful re-entry are high, with difficulty securing employment perhaps the highest, Barnhill told the media and other stakeholders during his opening remarks.“Post-incarceration employment is the primary driver for whether or not someone returns to prison, and the stark reality is that nearly two-thirds of formerly incarcerated individuals are still jobless six months after their release,” he said at Little Caesars Arena in March. “Second-chance and fair-chance employment programs are important tools to help recently released individuals get over that barrier.”The event was specifically designed to help.The Pistons partnered with the National Basketball Association’s Social Justice Coalition, Safe and Just Michigan, the city of Detroit, the Michigan Attorney General’s Office, Project Clean Slate, and the U.S. Attorney’s Office for the Eastern District of Michigan.Panel discussions in the afternoon focused on barriers to successful re-entry; second-chance hiring; fair-chance housing and other topics. Participants included representatives of the Detroit Housing Commission; Safe and Just Michigan; the GreenLight Fund; and the JPMorgan Chase Policy Center.Barnhill, who is a Pistons Alternate Governor under team owner Tom Gores, explained the importance of his participation during opening remarks. Platinum Equity owns Aventiv Technologies, a telecommunications provider for the incarcerated community that is supportive of second-chance opportunities and fair-chance employment.At Aventiv, 14 percent of 2023 new hires were fair chance hires. Under Platinum Equity’s stewardship, the company has invested heavily in technology, educational programming and training, career fairs and forged strategic partnerships to help prepare members of the incarcerated community for reentry.
Platinum Equity’s outreach program for the Jalen Rose Leadership Academy provides mentorship, scholarships. And genuine fun.
Home / News / Platinum Equitys Outreach Program For The Jalen Rose Leadership Academy Provides Mentorship Scholarships And Genuine Fun
DETROIT – Roaring laughter - and a little friendly trash talk - was heard in the Little Caesars Arena interview room only minutes before the start of the Detroit Pistons game against the Indiana Pacers on March 20. Jalen Rose Leadership Academy freshman basketball coach Demarcus Wingate sat on the podium where Pistons players normally take questions from the media. To his right sat Platinum Equity VP Vince Ellis, who provided some order to the proceedings by calling on JRLA students, who were eager to ask probing questions about the upcoming faculty-senior class basketball game. Well, they weren’t exactly questions. It was actually taunting about the upcoming beatdown they were planning for the faculty as fellow students, parent hosts, and JRLA and Platinum Equity representatives laughed.After Wingate stepped down, some JRLA students took their turns at the podium to take questions and shared their hopes and dreams as onlookers nodded in approval or snapped their fingers lightly to signal affirmation. For a few minutes, some students were able to experience what it’s like to field questions from the media, which could set in motion plans to make such a scene a reality for the students in the future. The mock press conference, an improvisation from Ellis, was a major highlight of a day-long mentorship program Platinum Equity sponsored for JRLA, the third such event hosted by the private equity firm. The event was also the kickoff to a series of mentorship outreach opportunities with the JRLA senior class that will culminate with graduation exercises in June.“I was blown away by that press conference,” parent volunteer Koron Dorsett said. “The students were talking about the press conference for days after the event; it was the highlight of the night.” Dorsett’s son, Ethan, has been a participant in the program since the beginning.“It really turned into this amazing experience,” said Platinum Equity Head of Corporate Marketing Katie Hulgrave, who is the primary organizer of the program. “The students were asking questions and role playing; you saw everyone's personality come out and what incredible students they are.” The day started with a mentorship program at the Pistons Performance Center a short distance away and concluded with a game-night experience in an LCA suite. For the first time, Platinum Equity also announced a donation of $25,000 for college scholarships.“It's important to have mentors; they provide a support system, a sense of family, and I'm fortunate to experience this every day at Platinum,” VP of M&A Execution Chris So said. "(Platinum Equity founder) Tom Gores is deeply passionate about the Detroit community and giving back, and we are fortunate to be in a position to make an impact on the lives of these high-achieving scholars.”“That's why I love coming to Platinum, and it motivates me to provide the same level of support to these students.”Tom Gores, Jalen Rose friendship fuels mentorshipInspired by the friendship between Gores and the school’s co-founder, Jalen Rose, Platinum Equity introduced the mentorship program in 2022 after serving as the longtime presenting sponsor for the school’s annual golf fundraiser in the summer. The mentorship program was natural evolution.Fifteen professionals from Platinum Equity supported the program with several juggling diligence meetings in other markets to make the event. Just before leaving the PPC to catch a flight to attend a meeting in south Florida, Lindsay Saldebar, a senior associate, said it was important for her to be there because she has had impactful mentors in her life.“Ever since I was in high school, college and in my short time in the professional world, I've always had mentors that have helped me navigate my professional and personal life,” Saldebar said. “When I was thinking about potentially being a mentor myself, I thought about the impact it has had on me, and it’s an opportunity that not only excites me, but it's also a fantastic way to be that resource for someone else.”The day officially started when buses picked up students at the school located in Rose’s old neighborhood in northwest Detroit. After a period of mingling with Platinum Equity and Pistons mentors, a speed networking exercise was held with mentees.Students and mentors sat at six different tables in the PPC Brinker Loft with each table featuring a stack of questions written on cards. Then students rotated tables to interact with the different mentors. One question: If you could switch bodies with someone else, who would it be? “That was my favorite question because the first person I thought of was my best friend because he can crochet better than me,” JRLA senior Henry Jones said. “I would be him so I could crochet all the stuff I want to and then just change back to me.” Jones plans to attend Morgan State (Md.) University and dreams of becoming a psychologist with a focus on African-American mental health. “Freshman year of high school I was a hot mess and not going to class,” Jones said. “Now, I’m far from where I used to be, and I am very proud of that. JRLA is so accepting, and I love it.” To further support the students, Platinum Equity announced three $8,000 scholarships for JRLA seniors. After the day, mentors and mentees were asked to fill out questionnaires geared toward finding a match. Once matched, Platinum and Pistons mentors will nominate their student mentees by submitting a short essay as to why their student should be awarded one of these scholarships. Administrators at JRLA will review and make the final selection for each award. The remaining $1,000 will be distributed by JRLA to mentees for book scholarships or other needs.“We wanted to structure the scholarship in a way that encouraged connections between the mentors and the mentees,” Hulgrave said. “As mentors, they get to nominate their students and see what criteria they most belong in and then JRLA decides who receives the final awards.”After the mentorship exercise, the students received a tour of the PPC, which serves as the Pistons’ corporate headquarters. The students received a behind-the-scenes look at Pistons business operations to show career options in professional sports. There was of course time for getting up shots on the practice court.Then it was time for the game-night experience.Students were seated courtside for the pregame workouts of players. The JRLA group received a behind-the-scenes look at the inner workings of an NBA game before the group was escorted to the suite. The suite was filled with game-night favorites like chicken wings, pizza, macaroni and cheese, candy and cookies. Pistons dancers and mascot Hooper also dropped by during the game.“The mascot coming up scared me,” JRLA senior Keylee Miller said with a laugh. “They showed us and our school on the Jumbotron too so it was a nice experience.”She added: “Having a mentor will help guide me and give me better opportunities. They can push me towards the right direction and help me stay motivated.” Hulgrave hopes the experience will promote meaningful relationships between Platinum Equity officials and JRLA students.“It has become more than just cutting a check,” Ellis said. “When you want to be truly impactful you have to be there, on the ground, providing mentorship, providing access to opportunities, jobs, internships and whatever it may be that Platinum can do to help these kids reach their goals.”
How Winc management team, Platinum Equity ops ‘rose to the occasion’ to pull off turnaround for customers in Australia, New Zealand
Home / News / How Winc Management Team Platinum Equity Ops Rose To The Occasion To Pull Off Turnaround For Customers In Australia New Zealand
SYDNEY – The distribution center west of Australia’s largest city is operating efficiently on the warm September day.Winc Supply Chain Director Chris Fox proudly takes visitors by rows of empty pallets neatly stacked near the loading dock.He points to fully automated robots moving boxes of workplace supplies like headphones, cleaning products, staples, hand sanitizer and common office snacks.Workers move about the more than 43,000 square meter facility on forklifts, placing boxes on shelves. There are multiple indicators of a thoughtful approach to sustainability.The scene is a far cry from 2020. The facility faced many challenges during the early stages of a long and difficult merger integration process that was initially delayed by a protracted regulatory review. Issues with company culture, systems, facilities and a massive inventory SKU – exacerbated by the pandemic - threatened the viability of the Australian workplace supplies company.Fox, who joined Winc in March 2020, recalls a loading dock of pallets filled with poorly organized products, which was problematic for the company and customers.“It was about the service, the products, our warehouses were all totally disrupted,” Winc Merchandising Director Nick Severino said. “We had wrong products in the wrong place. Everything you could imagine that could be wrong was wrong.”But today, the firm is on solid ground roughly seven years after the company was formed by Platinum Equity through a combination of Staples and OfficeMax assets acquired in Australia and New Zealand. We believe that the management team rose to the occasion. We were able to partner together, and we gave them the tools to survive. Additional capital provided them with the liquidity to withstand the downturn and invest in automation during a period of lighter business activity. We saw a relentless focus on driving operational efficiency. Adam Cooper, Managing Director, Platinum Equity “We're having a great year,” Winc CEO Peter Kelly said of 2023. “Our EBITDA is well ahead of budget, as it needed to be to deliver on our transformation. We believe we will significantly over deliver on our budget in Australia and New Zealand. Australia is showing us that it can be an attractive and profitable business with happy customers and employees. It’s important to me that our success is not restricted to our financial success. We're also performing very well across all measures of success particularly customer service, employee engagement, and our contributions back to society via our social agenda.”Platinum Equity executives and company executives credit the turnaround to a renewed commitment to customers and significant operational improvement. A mostly new management team has overseen the implementation of artificial intelligence and automation, adding another layer to customer responsiveness. Rising employee satisfaction combined with a strong social agenda that is good for business and a key Winc differentiator appears to have the company on a solid path after a rocky beginning and the disruption of the pandemic.“We believe that the management team rose to the occasion,” Platinum Equity Managing Director Adam Cooper said. “We were able to partner together, and we gave them the tools to survive. Additional capital provided them with the liquidity to withstand the downturn and invest in automation during a period of lighter business activity. We saw a relentless focus on driving operational efficiency. That’s a focus across the entire organization from warehouse operations to sales, merchandising, and back-office systems. They spend meaningful time and effort focusing on their interface with the customers through web-based applications.“Focusing on how to make the business better positioned the business for success as demand for workplace supplies increased.”Winc responds to customersKelly, who previously was a senior executive for Coca-Cola, has a colorful description of the services Winc provides as mostly a business-to-business company.“If you turned an office building upside down, everything that falls out, we sell it,” Kelly said. “Everything from furniture, kitchen, cleaning products, traditional stationery products and things you might use in a general office context, anything that fell out of that building, we sell it.”The client base is diverse. It includes large businesses, government agencies, hospitals, schools and other sectors, but the business wasn’t going well when Kelly arrived in March 2020. Customer service – from call centers to deliveries – was poor. The company struggled with procurement and supplier relationships. Employees were dissatisfied.“I did know about Winc selling into our customer base because I have been on the other side of the table,” Kelly said. “I used to run global procurement amongst other things at Coca-Cola Amatil, so I knew of Winc and its reputation, which was not in the best shape at that time. I knew what I was getting into.”The company needed a culture overhaul.“Typically, when things are broken, leaders have started to behave badly and many have formed silos around their teams,” Kelly said. “There's confusion with customers, a lot of unhappiness with employees.”In some ways, the pandemic helped. Australia was home to stringent lockdown orders, which severely impacted the office supply business. But Winc serves several important verticals, so it was deemed an essential business. With demand down and customers reluctant to leave the business during the uncertain time, Winc had a small window of opportunity to think through how to fix the company.“One of the biggest challenges was just knowing what to do first, how to order the sequence of events so that you successfully untangle the business,” Kelly said. “It’s like a bowl of spaghetti, it's all mixed up. How do you actually untangle all those strands to make meaningful progress in a quick but orderly fashion?”The first step was to improve relationships with customers. Fast forward to 2023, and the company reports that things are much better. The company’s customer retention win rate was once ~50%; in 2023 it was more than 90%. The NPS score, a global measure of customer satisfaction, used to sit beneath 20. Now, the company scores above 70 routinely.Winc Customer Experience Director Cara Pring, who was attracted to the company because of the social agenda and Kelly’s transformation vision, says a key aspect of the turnaround was simply listening to customers. When she was hired three years ago, Winc instituted a listening program where company representatives cold-called customers for feedback.“That led to improvements that drove our customer satisfaction up from the 80s into the 90s almost overnight,” Pring recalls. “It took about six months for us to get consistently above 94%, and now we sit around the 94% to 98% mark, which is really remarkable.”Company officials say gross margins have recovered through a combination of both sensible pricing, improved relations with preferred suppliers, and material improvements in productivity. Winc has also worked on unprofitable customer contracts to create win-win results for everyone.“We credit the improvement to hard work in ensuring our supply chain's right, our website's working well, our sales team are well-informed, our customers get what they expect; we deliver on time, in full, when they expect it,” Winc Sales Director Glenn Gunstone said.Automation + AI The distribution center and other sites like it stand at the center of the Winc universe since it touches all front-facing operations.Pring said spending a day at the facility working alongside e-commerce team members, taking products off the robots led to an action item that helped operational efficiency and productivity. When customers tour the site, the commitment to automation and sustainability is highlighted.“Our customers walk through the (distribution center) and can see how it's clean, it's organized, it's big, the automation there is impressive, and it shows a commitment to sustainability,” Gunstone said. “We show them what automation can look like. They can see it; they can feel it.“They also get a feel for the whole operation and what goes on behind the scenes. They get to see the process behind how their deliveries arrive.”Website improvements – which heavily involve the introduction of AI - are another source of pride.Over the last three years, improved self-service functionality has been introduced through the ability to track orders, pay invoices and process returns. Earlier in 2023, Winc introduced its chatbot, called Winnie. The chatbot attempts to resolve customer inquiries by surfacing resource articles, allowing the customer to potentially resolve the issue through self-service, which frees up call center representatives to handle more complex inquiries.“We've also delivered a number of smart data models on the website designed to personalize product recommendations, drive in-stock alternatives and lifecycle product recommendations so that we're suggesting related products to customers,” Pring said. “It also helps so that they don't run out of items like coffee and toilet paper and things like that. That's all more traditional, predictive AI machine learning.”The introduction of AI, warehouse automation and other improvements require capital – something Kelly says Platinum Equity is committed to.He recalls when he first assumed his post when Winc had to make the case for automation at the distribution center during a time of poor cash flow.“If it was left to me, it would've happened later when we could have generated our own cash to do it,” Kelly said. “Platinum supported the expenditures.”“Platinum's support for everything we've asked for has been outstanding. They are great partners and intelligent operators who just get it.”
Platinum Equity Completes Acquisition of Horizon Organic and Wallaby from Danone
Home / News / Platinum Equity Completes Acquisition Of Horizon Organic And Wallaby From Danone
Leading dairy products brands projected to benefit from Platinum Equity’s carve-out experience and operational expertise LOS ANGELES (April 2, 2024) – Platinum Equity today announced that the acquisition of a majority interest in Horizon Organic and Wallaby from Danone has been completed. 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 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.” 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.” "With confidence in our brands and people, we are excited to build a bright future for Horizon Organic,” said Horizon Organic CEO Tyler Holm. “Leveraging Platinum's operational capabilities and expertise, we're well positioned for growth and accelerated performance to best serve our customers and consumers while deepening our farmer partnerships and focusing on breakthrough product innovation." 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. Morgan Lewis served as legal advisor and Alston & Bird served as debt financing 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. 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 almost 90,000 employees, and products sold in over 120 markets, Danone generated €27.6 billion in sales in 2023. 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 platform 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 MSCI ESG Indexes, FTSE4Good Index Series, Bloomberg Gender Equality Index, and Access to Nutrition Index. Danone’s ambition is to be B CorpTM 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.
Platinum Equity’s presence during diligence key factor in acquisition of JELD-WEN’s Australasian business
Home / News / Platinum Equitys Presence During Diligence Key Factor In Acquisition Of Jeld Wens Australasian Business
SYDNEY ‑ JELD-WEN, a U.S.-based, publicly traded manufacturer of windows and doors, decided to divest its Australasian business in 2022, which set off a competitive sales process. The process was a chance for Platinum Equity to demonstrate that its operations-intensive approach not only comes into play after an acquisition – it’s also a key differentiator during the diligence stage. According to executives with the company (now branded Ventora Group), Platinum Equity’s extensive engagement with management and visits to plant sites before the acquisition was unique. “We spent a lot of time with the Platinum team throughout the due diligence process, not only here in Australia, but in our Asian facilities also,” Ventora Group CEO Scott Kelly said last year during a tour of a company showroom. “Platinum was the only team to visit as many sites as they did and to really understand the product, the market, the operations, and the entire value chain. They really took the time to understand what makes our business tick.” “Platinum took time to understand the complexities and the nuance of the business and the market, and as a result they have deep insights into how things really work. Seeing a presentation is one thing, but it's quite another to sit with team members and talk about about how the job works.” Platinum Equity announced the closing on the $461 million acquisition in July. “We are pleased to have provided a divestiture solution to JELD-WEN as the company continues to streamline and simplify its business,” Platinum Equity Co-President Louis Samson said when the deal was announced. “Platinum has decades of experience with corporate carveouts, and we expect a seamless transition. We are excited about the prospects for the Australasia business as a standalone company.” Ventora Group is a leading Australian designer, manufacturer and distributor of windows and doors. It employs approximately 5,000 people and comprises 41 manufacturing locations across Australia, Malaysia and Indonesia. Brands include Corinthian®, Stegbar®, A&L®, Trend® and Breezway®, among others. Several of the business’s brands are leaders in the production and innovation of energy efficient windows and doors. Recent increases in Australian energy efficiency standards could be a potential tailwind for the new company. “New regulations are coming into effect in Australia requiring improved energy performance in homes, and consumers increasingly appreciate the benefits of energy efficient products,” Platinum Equity Managing Director Adam Cooper said. “The business is well positioned to capitalize on those trends and continue investing in innovation, which is good news from both a financial and sustainability standpoint. A growing population, historically stable economic growth, and nationwide demand for additional housing across the country make us confident in the long-term outlook for the business.” The investment is another example of Platinum Equity’s ability to navigate complex carveout transactions as Ventora Group joins Club Car, Calderys, LifeScan and other portfolio companies that were once part of a larger corporate seller. Platinum was the only team to visit as many sites as they did and to really understand the product, the market, the operations, and the entire value chain. They really took the time to understand what makes our business tick. Scott Kelly, CEO, Ventora Group Cooper said Platinum Equity’s history in Australia combined with its experience in the building products industry (Cabinetworks, Paramount Global Surfaces) makes the firm a great partner for Ventora Group. “We have been investing in Australia for nearly a decade, we know the market and are committed to putting our financial and operational resources to work in the region,” Cooper said. Platinum Equity’s current portfolio also includes Winc, an office products provider formed through a combination of Staples and OfficeMax assets Platinum Equity acquired in Australia and New Zealand. Platinum Equity previously owned Sensis, an Australian directories business the firm acquired from Telstra. During a recent visit to Australia, Kelly and other senior executives said that the company is eager to partner with Platinum Equity to fully unlock the company’s potential. Kelly and Cooper both spoke recently about the company’s future. (Questions and answers have been edited for length and clarity). Q: How was that deal sourced? Cooper: That deal was sourced through Macquarie Capital, one of our strong relationships in Australia. We work with our business development group to maintain relationships with all the large investment banks in Australia to ensure they are thinking about us as opportunities arise and they understand who we are, what we do, and our interest in Australia. When a transaction surfaces that fits our profile, we get the call and the opportunity to assess our level of interest. Q: Why was it a Platinum Equity deal? Cooper: When it comes to Australia, the business needs the potential to scale, which is one of the challenges in Australia given the overall size of the market. There's not as many large companies in the country which has a population of 26 million people, so it's got to be a large transaction on a relative basis. We like some level of complexity. Australia has quite a few private equity firms. They're well capitalized, they're very comfortable doing regular transactions, but few have the appetite to do the more complex carveouts or deals with other tricky transaction dynamics. All those things checked the box when we were evaluating the JELD-WEN transaction. It was a large, complex carveout, and in an industry we know well with the overlay of a challenging M&A environment. Kelly: When you combine Platinum Equity’s experience in carveouts, the building industry, and their knowledge of the Australian market, it was clear that Platinum Equity was the right fit for us. The ops focus gave the team here in Australia a lot of belief that Platinum Equity would assist us in unlocking value. This has been reinforced since the deal closed and we work together to unlock that value for all stakeholders. Q: With the slow M&A market, how did you get the JELD-WEN carveout across the finish line? Cooper: We began the transaction in the summer of 2022. It didn't close until July of 2023, but the most intense period of our engagement was at the end of 2022, first quarter 2023. That was a very slow time in the market. The debt markets were in the risk-off position. Many firms, including ourselves, had hands full with portfolio companies. We dug in, did the work to find solutions, which ultimately led to the successful closing of the transaction in the second quarter of 2023. Cooper: We were able to craft creative financing, utilizing a sizeable portfolio of real estate assets within the company to structure a transaction that worked well given the market conditions. We effectively sold the real estate at a very attractive value and coupled the sale with conservative bank financing to fund the transaction. We acquired the business at an attractive value, with very low leverage in a challenging market. As a result, the business is well positioned with a conservative capital structure and good liquidity to manage through the expected building cycle. Q: Management cites Platinum’s presence during the diligence process as a key differentiator. Cooper: We like to be in-person, we like to get to know people and the culture, and we like to see the operations and facilities. If that means going to a dozen facilities, we do that. When you visit those facilities, it gives you a sense for the quality of the assets and the people driving the business. You also get to see the range of capabilities that they have across the organization and identify opportunities for improvement. Q: Explain Australian energy regulations. Why are those regulations an opportunity for Ventora Group and Platinum Equity? Cooper: The new regulation is called the 7-star energy rating. The market is currently transitioning from 6-star to 7-star on a regional basis. There is the potential of going to 8-star at some point in the future. It's all about energy efficiency and how to minimize the amount of energy that's lost through the exterior of a home. In the past, in many areas, builders have been able to address energy efficiency requirements through coated glass, insulation, or changing the roofing or other exterior materials. With the new regulations, the only way to achieve that is through the windows. The more energy-efficient windows are either dual-pane, or in some cases, thermally broken products. These products utilize advanced technologies with higher prices and better margins. With the technology that Ventora Group has developed and the investment that we're making in capacity, they're well positioned to take advantage of this market opportunity. Kelly: As we go from six stars to seven stars and move away from single-glazed, non-coated glass to double-glazed coated glass and thermally broken product, we create a very powerful value program for our customers and ultimately homeowners. The Australia economy has not kept pace with most other developed economies when it comes to energy efficiency in residential dwellings. This is right in our wheelhouse, and we are well positioned to help our customers transition into value creation through glazing and achieving 7 stars. Q: What areas require major investment? Cooper: Ventora Group is a leading, well invested asset in its space. Our goal is to make it great and we're going to do that through supporting them with investment in their technology, capabilities, and capacity. They've developed technology for the next generation of windows, and now they need to invest in the buildout of the capacity to take advantage of that market opportunity. The IT systems also need to be improved to fully capitalize on the company’s potential. In addition, we are going to support them by adding more automation to their production environment. Kelly: We're a business that's been built with acquisitions over many years with multiple systems and product nuances. One area that we will focus on will be operational excellence that drives value for customers. This involves many things, but we will be looking to consolidate systems, deliver on automation and mechanization, as well investing in programs on building sites to help our customers remove cost in the installation of our product. Having Platinum Equity looking from different perspectives and sharing learnings from other portfolio companies can only help take that operational excellence to another level.
