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Platinum Equity’s involvement in the Malibu Triathlon helps Children’s Hospital Los Angeles raise money for pediatric cancer research
Home / News / Platinum Equitys Involvement In The Malibu Triathlon Helps Childrens Hospital Los Angeles Raise Money For Pediatric Cancer Research
MALIBU, Calif. – Platinum Equity associate Lindsay Saldebar knows firsthand the impact Children’s Hospital Los Angeles has on the community. That’s why when she learned that Platinum Equity’s annual involvement in the Malibu Triathlon helps to raise money for the hospital, she just had to participate. “My (family member) was treated at Children’s Hospital at a young age,” Saldebar said. “It’s a cause that is near and dear to my heart, and I think it’s awesome to see Platinum Equity giving back to such an awesome organization that supports so many children.” Saldebar, who has been with the firm for just over two years, was part of the contingent of more than 100 Platinum Equity representatives involved in the 38th Annual Malibu 2XU Triathlon, a two-day event which raised more than $1 million for the hospital’s pediatric cancer research center. The longer Olympic distance occurs on Saturday; the Classic and Corporate Challenge events run on Sunday. After the event faced possible cancellation because of several issues concerning flooding underneath the Zuma Beach underpass, which is part of the biking route, Platinum Equity representatives were excited to spend time together outside of the regular office setting. Colleagues got up early to display signage and wave pom-poms to support their co-workers. “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. Calautti, who was on hand to support Platinum Equity employees, added: “I felt really energized after the day and I think a lot of people felt that way.” Nearly 60 Platinum Equity athletes participated in the race, which now holds an annual spot on the Platinum Equity calendar. “The Malibu Triathlon has literally changed some people’s lives. I’ve seen co-workers adopt new active lifestyles through training, create new friendships, all while supporting a great cause,” Platinum Equity Principal Katie McNaughton said. “But the most important thing to remember is the event helps patients and families who benefit from the work of the Children’s Hospital Los Angeles. It’s an extremely impactful event that does good in all sorts of ways.” Platinum Equity Managing Director Robert Klap raised almost $16,000, which was the fourth highest total among individual fundraisers. Platinum Equity’s total of nearly $40,000 raised was the 10th best among corporations. Klap, who works in Platinum Equity’s London office, competed for the first time with a relay team comprised of his son and Platinum Equity Managing Director Daniel Madden during Sunday’s Corporate Challenge competition. “Fundraising was easy because it's such a great cause that everybody in the world is happy to support it,” Klap said at the post-triathlon brunch held at the Malibu home of Platinum Equity Founder and CEO Tom Gores and his wife, Holly. Tom was on hand to welcome race participants. First timers encouraged by teammates, colleagues The scene at the Gores home was festive, but the day started just before dawn as adrenaline-fueled athletes traveled to Zuma Beach on the first day of October. Saldebar was one of those athletes, and as waves crashed on the Malibu shoreline and end-of-summer humidity filled the air, she was feeling ambitious walking toward the starting line. But that feeling left her as she completed the 4-mile run. “When you’re running towards Point Dume, you’re about 3 quarters of the way through but it gets lonely out there because you don’t see anyone,” Saldebar said. She needed a little extra motivation at that point. “(Senior Vice President) Katherine Sassine waited for me to come by and cheered me on as I ran past her. It was really awesome for her to be there, encouraging me and helping me get through the hardest stretch of the race.” Andrea Galindo and other Platinum Equity athletes joined Saldebar as first-time participants. For Galindo, a senior paralegal associate, it was a competitive outlet. “I'm competitive, and it looked like a lot of fun,” said Galindo, who attended the 2022 event to support her Platinum Equity colleagues. “I just wanted to get out there and do it myself.” Galindo agrees that’s a great team-building exercise. “It’s become camaraderie for a good cause, and it brings everyone together outside of the office,” Galindo said. Platinum Equity’s participation continues to grow Platinum Equity’s participation in the triathlon began when Partner Bryan Kelln decided to participate shortly after moving to Malibu in 2015. McNaughton also participated in 2015 shortly after the birth of her first child. Eight years later, their interest has turned into a growing commitment from Platinum Equity. After that first event, Kelln was joined by Managing Directors Christian Cook, Dori Konig, David Wolf and Madden the following year. “We just came out and did it,” Cook said while enjoying the pasta party the night before Sunday’s event. “For me, it really kind of kicked off focusing on fitness and having some kind of balance between work and family as well as taking care of yourself.” Madden, who works in Platinum’s Equity’s London office, agrees. “It’s always good fun,” Madden said. “It also depends on how much training you’ve done, but I find the swim quite hard because I don’t swim a lot and swimming in the ocean is always a challenge, but for me, just finishing is enjoyable.” The firm’s participation has continued to grow over the years. “Aside from a bunch of adrenaline junkies getting together every year, there are two really big benefits to this race,” Cook said. “The first is that this raises a lot of money for Children's Hospital Los Angeles, which is terrific, and the second is that we’ve got so many people involved, there’s a significant portion of the firm that does this event. “There are a lot of people that are usually on the road, visiting different portfolio companies and we don’t really get together and see each other very often. To be able to build and foster those relationships in an environment like this is special and makes us a stronger team.” Kelln and other Platinum Equity representatives are hopeful to increase participation to 100 athletes in the coming years. “It seems like the more people that come out and the more people that enjoy it, it becomes contagious in a good way,” Kelln said. “This year we had quite a number of team members come from all over Europe, Singapore and the United States. “It’s truly become a global event for Platinum.”
Platinum Equity to Acquire Co-Controlling Stake in US LBM
Home / News / Platinum Equity To Acquire Co Controlling Stake In Us Lbm
Platinum Equity and Existing Investor Bain Capital to Have Equal Ownership and Shared Commitment to Support Company’s Evolution as the Most Trusted Partner to Builders Across the Country LOS ANGELES (October 16, 2023) – Platinum Equity announced today the signing of a definitive agreement to acquire a co-controlling stake in US LBM, a leading distributor of specialty building materials in the United States, from Bain Capital Private Equity (“Bain Capital”). Bain Capital and Platinum Equity will have equal ownership stakes and joint Board governance. Financial terms of the private transaction were not disclosed.Founded in 2009 with 16 locations in three states, US LBM has grown into one of the nation’s leading distributors of specialty building materials, operating more than 450 locations throughout the country. The company offers a comprehensive portfolio of specialty products, including windows, doors, millwork, wallboard, roofing, siding, engineered components and cabinetry.Platinum Equity Co-President Jacob Kotzubei said he believes in the company’s short and long-term prospects.“US LBM has built an impressive, diversified business with scale while preserving a vibrant, entrepreneurial spirit,” said Kotzubei. “In the near term, we think the company’s footprint, financial profile, and operating model will allow it to continue growing and strengthening its operations as it navigates the complexities of the current environment. We are optimistic about the outlook for new housing over the long term given the nationwide shortage stemming from years of underbuilding that has created an imbalance in supply and demand. We look forward to working with the company’s leadership group and our partners at Bain Capital to put our financial and operational resources to work.”US LBM will continue under the leadership of Founder, President and CEO L.T. Gibson and the current management team."US LBM's national platform, strong supplier relationships, commitment to operational excellence and boosting organic in-market growth continue to make us an acquirer of choice in the building materials industry,” said Gibson. “We look forward to working with Platinum and our ongoing partnership with Bain Capital. Their combined operational expertise and experience in the building products space will be a significant asset in driving the growth and expansion of our business."“There are meaningful opportunities to continue building scale nationally and at the local level,” said Platinum Equity Managing Director Nathan Eldridge. “Our plan is to continue investing in core markets with new product offerings or capabilities, while further expanding the company’s reach geographically. We have a lot of experience investing in building products businesses and believe we are well positioned to support US LBM’s growth.”Platinum Equity recently signed a definitive agreement to acquire Cook & Boardman, a leading specialty distributor of commercial door and security integration solutions. Other building products companies in the firm’s current portfolio include: JELD-WEN’s Australasia business; Cabinetworks, a leading US manufacturer and distributor of kitchen and bath cabinets; and PGS, a provider of hard surface floor coverings.The US LBM transaction is expected to close by the end of Q1 2024 and is subject to customary closing conditions, including requisite regulatory approvals.RBC Capital Markets LLC, Jefferies and Barclays are serving as financial advisors, and Kirkland & Ellis LLP is serving as legal advisor, to US LBM and Bain Capital. Moelis & Company LLC is serving as financial advisor, Gibson, Dunn & Crutcher LLP is providing legal counsel, and Willkie Farr & Gallagher LLP is providing debt structuring counsel to Platinum Equity on the investment in US LBM.About US LBMUS LBM is the largest privately owned, full-line distributor of specialty building materials in the United States. Offering a comprehensive portfolio of specialty products, including windows, doors, millwork, wallboard, roofing, siding, engineered components and cabinetry, US LBM combines the scale and operational advantages of a national platform with a local go-to-market strategy through its national network of locations across the country. For more information, please visit uslbm.com or follow US LBM on LinkedIn.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 27 years Platinum Equity has completed more than 350 acquisitions.
Platinum Equity to Acquire Majority Interest in the Cook & Boardman Group from Littlejohn
Home / News / Platinum Equity To Acquire Majority Interest In The Cook Boardman Group From Littlejohn
LOS ANGELES (September 29, 2023) – Platinum Equity announced today the signing of a definitive agreement to acquire a majority interest in The Cook & Boardman Group (“Cook & Boardman” or “C&B”) from Littlejohn & Co., LLC (“Littlejohn”). Littlejohn will remain a significant minority shareholder. Financial terms of the transaction were not disclosed. Established in 1955 and based in Winston-Salem, North Carolina, Cook & Boardman is a leading specialty distributor of commercial door and security integration solutions. The company offers a broad range of products including metal and wood doors, locks, doorframes, and other related building components for non-residential applications. It operates a network of more than 70 locations across 21 states, and services its customers nationwide. Cook & Boardman’s growing Security Integration division provides electronic safety and security products as well as communications products and solutions, primarily to education and government end markets. “Cook & Boardman has built an impressive, diversified business with national scale,” said Platinum Equity Co-President Jacob Kotzubei. “Customers in this space want more than just a traditional distributor of doors and hardware. They increasingly need value added solutions, including electronic safety and security systems. We believe Cook & Boardman is uniquely positioned to capitalize on that growing demand for integrated solutions. We look forward to working with the company’s leadership group and our partners at Littlejohn to continue growing the business.” Platinum Equity and Littlejohn have partnered multiple times in the past, including most recently as co-owners of Interior Logic Group, a provider of interior design and finish solutions for the homebuilding industry. The firms sold ILG in 2021. Steven Raich, Littlejohn Managing Director said, “We are proud to have supported Cook & Boardman’s substantial growth by expanding its footprint nationally and bringing innovative combined commercial door and security integration solutions to the market. We are confident that Platinum is the right partner to continue executing the company’s growth plan and look forward to working with them as a meaningful shareholder to drive the next phase of Cook & Boardman’s evolution.” Cook & Boardman has built an impressive, diversified business with national scale. Customers in this space want more than just a traditional distributor of doors and hardware. They increasingly need value added solutions, including electronic safety and security systems. We believe Cook & Boardman is uniquely positioned to capitalize on that growing demand for integrated solutions. We look forward to working with the company’s leadership group and our partners at Littlejohn to continue growing the business. Jacob Kotzubei, Co-President, Platinum Equity David Eisner, Cook & Boardman Interim CEO added, “Littlejohn's proven ability to build and scale businesses has helped us successfully execute strategic acquisitions, expand into the Northeast, Midwest, and West Coast markets, and build our Security Integration division over the past five years. Platinum’s financial resources and operations expertise can now help us take it to another level. We look forward to working with Platinum and Littlejohn to support our associates in delivering market-leading solutions with exceptional service to our customers and communities.”“C&B competes in a highly fragmented industry with meaningful opportunities to grow organically and through additional M&A,” said Platinum Equity Managing Director Nathan Eldridge. “We expect to continue building scale in core markets while further expanding in specialty categories like safety and security. We have a lot of experience investing in building products businesses and believe we are well positioned to support Cook & Boardman’s growth and ongoing success in the marketplace.”Platinum Equity’s current building products portfolio includes Jeld Wen’s Australasia business; Cabinetworks, the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the United States; and PGS, a provider of hard surface floor coverings.The transaction is subject to customary closing conditions and is expected to close before the end of the year.BofA Securities served as exclusive financial advisor and Gibson, Dunn & Crutcher LLP served as legal advisor to Cook & Boardman. Latham & Watkins LLP is providing legal counsel and Willkie Farr & Gallagher LLP is providing 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 27 years Platinum Equity has completed more than 350 acquisitions.About Littlejohn & Co., LLC:Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in growing middle-market industrial and services companies that can benefit from Littlejohn’s 25+ years of operational and sector expertise. With approximately $8 billion in regulatory assets under management, the firm seeks to build sustainable success for its portfolio companies through a disciplined approach to engineering change. For more information about Littlejohn, visit www.littlejohnllc.com.About Cook & Boardman GroupCook & Boardman is the nation’s leading distributor of commercial doors, frames & hardware, electronic access control equipment and specialty (Division 10) products. The company is also one of the nation’s largest and fastest growing providers of integrated security solutions - including physical security, access control, wireless networking, low voltage cabling, audio/visual and managed information technology products. The company serves multi-family and non-residential markets including the commercial, education, government, healthcare, office and hospitality sectors from more than 70 locations across 21 states and nationwide through its eCommerce portal at Www.Cookandboardman.Com.
As headwinds sidelined strategic buyers, Platinum stepped up to deliver speed and certainty for Calderys carveout and HarbisonWalker add-on
Home / News / 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, Platinum navigated a challenging M&A market to create a platform poised for additional growth and investment. In a matter of 20 days, Platinum closed a €930m EV carveout deal for the refractories business of French-headquartered corporate Imerys, plus the transformative add-on of HarbisonWalker International (HWI), a U.S.-based refractory company. The combined businesses will operate under the name Calderys. The Imerys deal emerged as a carveout from a multinational business at a moment when little M&A activity was happening. Platinum had worked on other divestment opportunities with Imerys in the past and was closely tracking the situation. Imerys is a complex firm, really a mining business specializing in minerals, and its refractories business was a downstream division. The refractories division grew to the point where it was time to be a standalone company, in part because in some cases, it was competing against Imerys’ clients. When Imerys brought the refractories business to market, they needed a partner that could assess and see the value through extensive complexity. Platinum approached the carveout solution holistically. The team also offered certainty around the financing – something strategics and sponsors could not do in the moment because most would have had to conduct a capital raise in a jittery market. At the same time, a U.S.-based refractories business came to market, and Platinum was able to pursue the opportunities in tandem with an eye toward the long-term potential of building Calderys as a truly global platform with a transformative add-on. “These businesses are a natural fit for Platinum and vice versa. We came to the table with our carveout capabilities, our history of building assets into platforms, and our experience with specialty materials, and these all add to the operational resources that we can put behind these global businesses.” Louis Samson, Co-President, Platinum Equity “These businesses are a natural fit for Platinum and vice versa,” said Platinum Equity Partner Louis Samson. “We came to the table with our carveout capabilities, our history of building assets into platforms, and our experience with specialty materials, and these all add to the operational resources that we can put behind these global businesses.” Calderys and HWI are both suppliers and service providers in the refractories space. Refractories are materials used in extremely high heat settings, with clients in the iron and steel, thermal and foundry markets. Calderys is headquartered in Paris, France, while U.S.-based HWI is in Pittsburgh, Pennsylvania. Both companies have global operations and clients across 16 countries. Q: These deals closed in January and February of 2023, in a period of high uncertainty across the M&A market. How did they come to pass, in that environment? Samson: For starters, Platinum is always open for business. That mindset is core to our investment philosophy. Every market environment presents risks and opportunities. In one characterized by uncertainty, there’s an opportunity to be reliable when others are hesitant, and there’s an opportunity to acquire good assets at compelling values. Vorderwuelbecke: The environment actually drove this deal to market, in a sense, because carveouts are a source of liquidity for sellers when financing options are more expensive or unavailable. Companies see the opportunity to divest from non-core assets to generate cash to focus on their priorities. Itani: Agreed. The markets also affected who was vying for the deal. Strategics had looked at Calderys in the past and they looked again this time, but with depressed public equity values and the headwinds in the broader industrial environment, they were not in a strong position to compete for the deal. Q: What made this carve-out more complex or unique than usual? Vorderwuelbecke: Because the seller’s initial process was focused on strategics, the materials prepared were different than what most sponsors would normally require – but we were ready and flexible as they pivoted the process. We were able to put together a carveout plan in short order and really guide the seller through that new framework together. Samson: Carveouts are an area of expertise for us. We have on our team the capabilities and resources to create infrastructure – the treasury team, the IT function, etc., – while also crafting a strategic vision for building this business into a global platform. We put a carveout team in place immediately, with seven full-time equivalent staff, multi-disciplinary, plus two M&A operations team members as extended support. Q: And how did the HWI add-on happen nearly simultaneously? Vorderwuelbecke: We were watching the refractory space very closely, so we were ready to bid when HWI came to market. In fact, we put in our HWI bid on the same day our Calderys offer was signed, and they closed three weeks apart. The synergies were immediately clear. These two assets give each other a footprint expansion, cross-selling opportunities and operational synergies. Q: In what ways are these typical Platinum deals? Vorderwuelbecke: There are quite a few Platinum markers on these deals, actually. Our strength with carveouts, as Louis mentioned, made these a clear fit for Platinum, as we were ready to stand these assets up with the structure they need. The transformative add-on piece is a typical Platinum play. We also have a growing list of investments with this kind of multi-national profile. Itani: The deals also leveraged our experience in the materials sector. We have a long history in this area, with our investments in companies like Ryerson, PNA, Kymera, Ecka, etc. And as Malik mentions, our footprint in Europe continues to expand, so it’s great to see the momentum strengthening even in a difficult deal environment. Q: Is there anything atypical about the deals? Samson: Aside from needing a creative financing solution, the structure of the HWI purchase was atypical, because the assets were part of a legacy asbestos trust. That made for complex seller dynamics, across the trust and the different stakeholders. We called on our experience negotiating other situations with multiple owners who were not necessarily aligned in their interests. Ultimately, we saw the value in the asset and we didn’t shy away from complexity. We put our heads together and found a way to make it work. From the outset, we were flexible about the deal structure and ready to act fast. This stance offers deal certainty to the seller, which is at times more important to sellers than the final price. Q: Speaking of our typical approach, what are the operational opportunities here? Vorderwuelbecke: There are obvious synergies to bringing these two businesses together, cost savings, plus an opportunity to refocus strategy as we build these out with Calderys as a global platform. As soon as the transactions closed, we moved most of our deal team members into the Transition and Value Creation (portfolio operations) roles. Then we have our usual tools, the systems we use to identify product margins and help the management allocate resources. We can contemplate meaningful investment to focus and grow this business in a different way than was possible as part of a bigger organization. It’s a very fragmented market, so there is also substantial opportunity to explore additional acquisitions. Samson: The market environment is a factor in how these deals came together but the operational opportunities are much more long term. We are positioning Calderys for the materials-intensive era that we see continuing well beyond the boundaries of this immediate cycle.
How $35M renewal of Alabama refractory plant is a ‘remarkable’ story for HarbisonWalker
Home / News / How 35m Renewal Of Alabama Refractory Plant Is A Remarkable Story For Harbisonwalker
FAIRFIELD, Ala. – The shuttered plant was in rough shape. During a 2021 visit to check the condition of the idled plant, which once manufactured refractory products used for aluminum production, HarbisonWalker International representatives Kevin Ballard and Jason West came upon a scene where Mother Nature was winning. Ballard, vice president of operations and engineering, recalled the visit in June. “Weeds were high, and some pigeons had found homes in the rafters,” Ballard said. West, director of engineering and maintenance, who lives in nearby Jasper, worked at the location before it closed. “After working there for so long, you remembered all the people and everything moving around when you walked in,” he said. “You could hear a pin drop.” But as Ballard and West walked the vacant plant that day, they envisioned its potential. Ballard and West’s trip to the former Alabama plant was a part of HWI’s company-wide initiative to respond to a surge in new steel production facilities in the southern United States. With a Michigan plant running to full capacity to fulfill increasing steel demands, the two men realized that with a major refurbishing effort, a problem could be solved in this small town a short distance from downtown Birmingham. Although other sites were considered, HWI announced in early 2022 it would convert the property into a manufacturing, service, and distribution hub for southern U.S. steel customers. The company eventually invested more than $35 million in the 200,000-square-foot space that re-opened as HWI's “AL1” plant in late December 2022. Shortly after the re-opening, Platinum Equity completed the acquisition of HWI, and began merging the company with Calderys, a global provider for industries operating in high-temperature conditions. HWI has officially rebranded as ‘HWI, a member of Calderys’ and is now the brand for the Americas region in the group. AL1 was a natural place for Platinum Equity executives to meet with Calderys and HWI leadership in late June. Ross Wilkin, senior vice president of the Americas region of Calderys, calls the new facility “remarkable.” “We were able to revitalize an obsolete facility and create a full-service hub to better serve our customers in the South while advancing technologies and our environmental commitments – all at a cost of slightly more than $35 million,” Wilkin said. “If we were to build an entirely new space, it would have cost us more than double that amount. “AL1 is a remarkable story of renewal, innovation, sustainability and customer responsiveness.” Currently, the facility employs approximately 30, with plans to employ up to 50 people. The plant will eventually produce 30,000 metric tons of refractory bricks per year.Refractory materials are vital for steel production Refractory materials are used by virtually every industry that requires manufacturing in high temperatures. Think glass, cement, aluminum – and steel. “The refractory world is in everything we touch, you just don't always think about it or know it,” West said. “Steel is all around us. The roads, the bridges you drive on. The signs that showed you how to get here, the plane that flew you down here.” While a decline in the aluminum market led to the Alabama facility’s closure in 2019, U.S. steelmakers’ growing demands resulted in reaching full capacity at HWI's Michigan plant a couple of years later. Located in White Cloud, a town north of Grand Rapids on the west side of the state, the plant currently produces 90,000 metric tons per year. After the passing of the $1.2 trillion Infrastructure Investment and Jobs Act in 2021, the American Iron and Steel Institute, an association of North American steel producers, estimated 5 million metric tons of steel will be needed for every $100 billion of direct infrastructure spending in the legislation. The bill also dictates that steel produced in the U.S. must be used for infrastructure projects. This implied a growing need of refractory products, especially magnesia carbon bricks, from southern steel producers to protect their furnaces from molten steel that would otherwise melt production containers. “Our White Cloud plant was working seven days a week, 365 days a year, and products needed to be shipped the distance to customers’ new southern locations,” Ballard said. “Repurposing the Alabama facility aligned perfectly with the steelmaking expansion in the South.” The new facility addresses HWI’s commitment to environmental responsibility while utilizing some of the most advanced manufacturing processes for brick refractories. From raw material entry to robotic presses and packaging, its automated processes are expected to result in high-quality control and production efficiencies. Adding to its environmentally sound features, the facility was revitalized under Alabama Brownfield redevelopment regulations. HWI refurbished the plant with managing resources in mind, including energy savings measures and electric lift trucks. Ballard credits the HWI engineering team for completing most of the extensive overhaul in such a short period of time. “Our strategic location to customers means a reduction in our carbon footprint since we’re using less fuel to ship products,” West said. Quality assurance manager Ben Baxter said: “Efficiencies are everywhere here. Our teams can run most of our operations through the touch of an iPad.” The plant renewal brought media coverage and local officials praised HWI. “We are excited to work with HarbisonWalker International to bring jobs to the Fairfield area of Jefferson County,” Jefferson County commissioner Steve Ammons said in a news release. “Providing more and better opportunities for our citizens is our goal in working with companies and municipalities.”
Michigan announces Cabinetworks Group adding 110 jobs, relocating corporate headquarters to Detroit suburb
Home / News / Michigan Announces Cabinetworks Group Adding 110 Jobs Relocating Corporate Headquarters To Detroit Suburb
Michigan officials announced recently that Cabinetworks Group will add 110 corporate and professional services jobs while moving its headquarters from Ann Arbor, Mich., to a nearby Detroit suburb.Gov. Gretchen Whitmer and the Michigan Economic Development Corporation said the cabinet manufacturer plans to “centralize corporate functions to better serve its customer base and to attract and retain talent by relocating to a Livonia, Mich., facility that is being improved and renovated.” The state will award 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.” Cabinetworks is the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the U.S. The company is currently making significant improvements and renovations to create a modern headquarters incorporating the latest technology to facilitate teamwork and collaboration among its more than 8,000 employees nationwide. Platinum Equity acquired Cabinetworks in 2021. The Detroit Regional Partnership has also offered marketing assistance and talent recruitment in support of the project. “I appreciate the support and warm welcome we’ve received from the Detroit Regional Partnership,” Cabinetworks CEO John Barkhouse said in the release. “Our entire team is excited about our future in Michigan and we’re looking forward to establishing roots in Livonia. We’re energized and ready to grow here.”
Unical Aviation CEO Sharon Green: How focus on operations, efficiency, has fueled growth at aftermarket aircraft parts supplier
Home / News / Unical Aviation Ceo Sharon Green How Focus On Operations Efficiency Has Fueled Growth At Aftermarket Aircraft Parts Supplier
Sharon Green was on the General Electric Co. transition team following the sale of GE Capital Aviation Services to Irish aircraft leasing giant Aercap, a deal worth $30 billion.As the transition period was winding down, Green received several calls from a headhunter representing Platinum Equity. It was seeking an experienced executive to run Unical Aviation, which Platinum Equity acquired in July 2021. The Small Cap investment team led the acquisition.But Green ghosted the calls – she readily admits to a previous negative perception of private equity. But on the third call, the recruiter identified herself as working for Platinum Equity. Green recalled a friend, who had worked for one of the firm’s portfolio companies, speaking highly of the firm based in Beverly Hills, Calif.After Green was named CEO at the global supplier of aftermarket aircraft parts and services in January 2022, she studied the possibility of moving the company from its City of Industry headquarters in the suburbs east of Los Angeles.After presenting cost justifications to Platinum Equity Managing Director Dori Konig, Unical Aviation decided to relocate to Glendale, Ariz. Earlier this year, 18-wheelers began loading more than 85 million spare parts from the company’s warehouse.“We had 30 to 50 trucks moving continuously for about 16 weeks,” Green said. “We joked that we may have created a blip in the transportation market in California for a couple of months.”The restructuring didn’t stop there.The company has completed two acquisitions – Arizona-based CAVU Component Repair in 2022 and this year’s Miami-based iAeroThrust LLC, the latter renamed QuickTurn as part of a joint venture with New York-based FTAI Aviation Ltd.She also recruited an executive team with resumes built with top industry players within the used serviceable materials (USM) market to get the company thinking globally.The payoff?Momentum from the restructuring has helped the company return to operating at pre-pandemic levels.“We’ve focused on operations and efficiency, and had no layoffs,” Green said.She’s now eyeing a fast-growing spare parts business that is experiencing rising global sales because of a broad recovery in air travel, with Asia becoming an emerging market for Unical Aviation.Green recently discussed changes at Unical Aviation, her vision for the business and thoughts on private equity and how Platinum Equity stands out.(Answers have been edited for clarity and length).PE: Why were headquarters moved?Green: Our entire global operations were centered in Los Angeles which has a high cost of doing business. Lease rates in the City of Industry were some of the highest in the nation and rising. We explored other aviation hubs and determined moving into neighboring Arizona produced significant financial savings without lengthy disruption to the business. As an added bonus, we discovered access to trained labor, from mechanics to accountants, was much improved.PE: Why did you join Unical?Green: I wasn’t looking. But then a headhunter called. They called and called, and finally mentioned Platinum Equity. One of my very good friends worked for a different portfolio company of Platinum, and she sang Platinum praises.Based on her recommendation, I took the call and visited Southern California and found Unical to probably be one of the best-kept secrets I have ever seen in the aviation business – a gigantic parts facility, maintenance, repair and overhaul operations (MRO) with wide body hangars, a parts manufacturer approval business and a very knowledgeable team. I had begun my aviation career at a family-owned business that was ultimately acquired by GE, so knew firsthand what that team was going through. It felt like a perfect match.PE: What was difficult for you to understand when you arrived at Unical in early 2022? What were some of the key issues that you identified?Green: Before Platinum Equity, the company was family-owned and operated. The owner was a true entrepreneur with true vision, and he directed nearly every aspect of the company. He was highly respected by the team and rarely questioned. When I joined, that respect (for the position) rolled over to me. Coming from a highly collaborative environment with constant questioning such as ‘what if we tried this or that’, I had to learn in a hurry when I questioned trying a different method, we were using that different method the next day. Sometimes even if the people involved knew it had failed in the past, things were changed because I suggested it – out of respect for the position. I learned to preface my ‘what-if’s’ with ‘don’t change anything yet.’PE: How much time have you invested in hiring senior leaders? Is hiring where you want it, and how important is this process?Green: When Platinum arrived, the existing management team at Unical was tired and discouraged. They had invested heart and soul in a business where they planned to retire, had navigated the pandemic, and the sell was a shock. Given it was privately held, none had ever seen financial statements, tracked KPI’s, nor actively participated in running the business. The fast-paced, transformational private equity environment was not something they had signed up for. Many have stayed with the company, however most opted out of executive leadership roles, so we have invested a lot of energy building a new leadership team. This gave us an opportunity, though, to build a diverse group with backgrounds in all the major used serviceable materials players.PE: Do you feel that that you're being allowed to make the decisions you want based on your experience as a known leader and executive in the industry?Green: Yes, and this move is a prime example. When I was interviewing with Dori Konig, I questioned the sustainability of a California locale. Dori considered that a ‘next owner’ decision given Unical’s large footprint. But when Platinum’s Dan Krasner passed along a third-party real estate assessment in normal course, we opted to do a deeper dive and initial numbers showed extremely significant savings potential. I put that in front of Dori, and he was immediately on board.PE: How will a macroeconomic trend (rising consumer flight demand) impact Unical Aviation? You would assume this would increase the need for airline parts for upkeep, but please clarify?Green: The more planes are in the air or the higher the flight hours, the higher the need for maintenance, and by extension, for parts. The end of the pandemic had already boosted MRO activity as parked planes began coming back into service, and increased demand is continuing to fuel that improvement. Airlines and shops came out of the pandemic far more cost conscious, so those who would previously have defaulted to original equipment manufacturer parts are now turning to USM providers. We are seeing a huge uptick in business.PE: Does Unical Aviation see opportunities for growth in the Asian market?Green: Unical has historically been most successful on the buy side in the Asia-Pacific region. As age restrictions on parts that may be installed on aircraft are eased, we anticipate a quarter or more of our sales will come from that region.
Why Jalen Rose appreciates Tom Gores’, Platinum Equity’s decade-long support of JRLA annual golf outing fundraiser
Home / News / Why Jalen Rose Appreciates Tom Gores Platinum Equitys Decade Long Support Of Jrla Annual Golf Outing Fundraiser
DETROIT – Earlier this summer, Jalen Rose walked the hallways with students at the school that bears his name as the youths shared goals and aspirations for the upcoming school year. The visit to the Jalen Rose Leadership Academy came roughly a month after Rose presided over graduation ceremonies for the school’s ninth senior class. Before his session with students, Rose, who starred as a point guard at now-closed Detroit Southwestern before going on to stardom at the University of Michigan and in the NBA, revealed a major reason he decided to found a school in the neighborhood where he grew up. “Each school that I attended growing up is closed,” Rose said. “It's important to me that our young people are in position to chase their dreams, to chase their goals, to get out of their comfort zone, to know that they're loved, to know that they're supported, to know that it's OK to have a bad day, to know that we're going to love you.” Platinum Equity and CEO Tom Gores will celebrate 10 years as the JRLA Celebrity Golf Classic’s presenting sponsor on Aug. 21. “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. “Now we have a track record of influencing 400 currently in high school and another 900 graduates. I'm just grateful that Tom Gores is right by my side and willing to help take this to the next level. That's way bigger than JRLA.” Located in northwest Detroit, JRLA is an open enrollment, tuition-free, public charter high school co-founded by Rose. 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 become the school’s top fundraiser that raises funds for a variety of educational necessities. On the day following last year’s golf outing, Platinum Equity sponsored a mentorship breakfast at the Detroit Pistons Performance Center featuring a tour of the facility and a panel discussion led by Platinum Equity and Pistons executives. Earlier this year, Platinum Equity invited JRLA students to a Pistons game. There are plans to grow the mentorship relationship. “Platinum has proudly supported JRLA for many years, but we wanted to get closer to the students and directly support them by sharing our experiences and lessons learned,” Platinum Principal Katie McNaughton said after last year’s event. “I know for myself and many of us at Platinum, relationships and mentors helped get us where we are today. Tom is a huge advocate of mentoring so we thought that it was time to connect with the students on a personal level, share what we’ve learned and get to know them and hopefully add value as they map out their career paths.”
Platinum Equity’s Credit Team Provides Term Loan to RELAM to Support Company’s Growth
Home / News / Platinum Equitys Credit Team Provides Term Loan To Relam To Support Companys Growth
LOS ANGELES, Aug. 15, 2023 — Platinum Equity announced today it provided a Second-Lien Term Loan (“Term Loan”) to Railway Equipment Leasing and Maintenance Inc. (“RELAM”) to refinance existing indebtedness and support future growth of the business. RELAM is a well-known provider of specialty rental equipment for recurring, regulatory-driven maintenance-of-way (“MOW”) work on railroads, serving the industry’s largest operators and contracted service providers. “We are pleased to have provided RELAM a financing solution with speed and certainty in a market that remains complex for middle-market borrowers,” said Platinum Equity Co-President Louis Samson. “Platinum has deep domain expertise in equipment rental and we have a lot of experience helping companies in that space grow and expand their businesses. We believe our sector knowledge combined with our operations-intensive model puts us in a unique position to underwrite this type of credit investment.” "Platinum has deep domain expertise in equipment rental and we have a lot of experience helping companies in that space grow and expand their businesses. We believe our sector knowledge combined with our operations-intensive model puts us in a unique position to underwrite this type of credit investment.” Louis Samson, Co-President, Platinum Equity In July 2020, affiliates of Paceline Equity Partners, LLC (“Paceline”) combined two existing MOW railroad equipment rental businesses to create RELAM, now one of the most important MOW rental companies in North America. In January 2023, the company bolstered its rental offering through the acquisition of Wiskerchen Rental & Leasing, a company that manufactures, services, and rents out hi-rail trucks and related equipment. The company’s rental solutions offer customers preferential access to different types of equipment with economic and operational advantages to otherwise owning or financing the equipment. RELAM occupies a unique position in the industry by providing value to equipment manufacturers, as well as railroad operators and maintenance contractors. The RELAM financing is led by Platinum Equity’s dedicated credit team, which seeks opportunities to provide debt capital to companies for a variety of uses, including acquisitions, refinancings and recapitalizations. “We strive to forge meaningful partnerships with borrowers and their sponsors where we can add material value to the company’s strategic plans,” said Platinum Equity Managing Director and Global Head of Credit Michael Fabiano. “RELAM is a great fit with a resilient financial profile, an experienced and capable management team, and a business model we know very well. We are excited to partner with Paceline to support the next stage of RELAM’s growth.” Platinum’s credit team targets companies that generally have $15 to $75 million of EBITDA and are primarily based in North America. “Our credit team is actively looking for more opportunities to put our financial and operational expertise to work,” added Mr. Fabiano. Houlihan Lokey acted as the exclusive placement agent to RELAM. 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 400 acquisitions and debt financings.
HC Companies
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HC Companies Print Print Active North America Industrials Packaging Leading North American manufacturer of horticultural containers Company Overview HC Companies produces a wide range of planters, pots, and accessories for the greenhouse, nursery and retail marketsProduct suite includes fiber and biobased solutions produced with post-consumer and post-industrial materials to meet increasing consumer demand for sustainable solutionsThe company operates six manufacturing locations and distribution centers across the US and Canada Transaction Description Acquired via a private transaction in August 2023 SKUs Offered ~6,000 Manufacturing & Distribution Sq. Ft. 1.7M+ 2450 Edison Blvd, Suite 3, Twinsburg, OH 44087 hc-companies.com Leading North American manufacturer of horticultural containers Company Overview HC Companies produces a wide range of planters, pots, and accessories for the greenhouse, nursery and retail marketsProduct suite includes fiber and biobased solutions produced with post-consumer and post-industrial materials to meet increasing consumer demand for sustainable solutionsThe company operates six manufacturing locations and distribution centers across the US and Canada SKUs Offered ~6,000 Transaction Description Acquired via a private transaction in August 2023 Manufacturing & Distribution Sq. Ft. 1.7M+ 2450 Edison Blvd, Suite 3, Twinsburg, OH 44087 hc-companies.com Previous Next × × × × Latest Article Platinum Equity Completes Acquisition of Horticultural Container Manufacturer HC Companies August 03, 2023 LOS ANGELES, August 3, 2023 — Platinum Equity announced today that the acquisition of The HC Companies, a leading North American manufacturer of horticultural containers, has been completed. Financial terms were not disclos... Read More Latest Article Platinum Equity Credit Team Announces Financing to Support Acquisition of Tom Barrow Company July 25, 2023 LOS ANGELES, July 25, 2023 — Platinum Equity announced today it provided an unsecured term loan to the Tom Barrow Company in connection with Ardian’s recent acquisition of a majority stake in the business.Tom Barrow is a ... Read More Latest Article Platinum Equity to Acquire Horticultural Container Manufacturer HC Companies July 17, 2023 LOS ANGELES, July 17, 2023 — Platinum Equity announced today the signing of a definitive agreement to acquire The HC Companies, a leading North American manufacturer of horticultural containers.Financial terms were not disc... Read More previous Next Our Portfolio Explore the full Platinum Equity portfolio of companies by transaction type, industry, location or ownership status. BROWSE NOW
