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Platinum Equity Acquires American Racing Equipment Inc.
Home / News / Platinum Equity Acquires American Racing Equipment Inc
Premier Manufacturer Of High Performance Automotive Wheels Is Envisioned As Platform for Additional AcquisitionsBEVERLY HILLS, Calif. (July 21, 2005) – Platinum Equity announced today that it has acquired American Racing Equipment Inc., a leading manufacturer of high-performance automotive wheels to aftermarket customers in North America, from Noranda Aluminum Inc.Based in Southern California with a heritage dating back 50 years, American Racing Equipment is an industry pioneer that employs 1,400 people in manufacturing operations in Los Angeles and in Tijuana, Mexico, as well as in 44 distribution centers across the United States and Canada.“American Racing has a rich heritage and one of the industry’s premier brand names for high performance, custom automotive wheels,” said Johnny O. Lopez, executive vice president for mergers and acquisitions at Platinum. “We are very pleased with the opportunity to acquire this company and help it grow in the future.”Robert J. Wentworth, executive vice president for M&A Finance at Platinum Equity, said the firm sees significant potential for American Racing not only as a standalone company, but as a potential platform for add-on acquisitions.“The management team at ARE has done a terrific job in establishing market share and brand awareness by delivering high quality products through a well-established distribution network,” Mr. Wentworth said. “We are very confident we can help them accelerate growth by identifying and executing additional acquisitions.”The business was acquired from Noranda Aluminum Inc., a wholly owned subsidiary of Falconbridge Limited (NYSE: FAL), a Toronto-based copper and nickel mining company, which recently merged with Noranda Aluminum’s former parent Noranda Inc.Falconbridge designated American Racing as a non-core business unit and divested the business in order to focus on its core mining and metals operation. Bill Brooks, president of Noranda Aluminum Inc., said the divestiture was made to “allow the wheels business to move forward under new ownership.”Mr. Lopez, who spearheaded the transaction for Platinum, said all parties benefited.“This transaction represents a great opportunity for American Racing and for Platinum Equity, and it’s also very beneficial for Falconbridge,” Mr. Lopez said. “We take great pride in partnering with large companies that are restructuring through the divestiture of non-core assets. This is an example of that approach in action.”Agreement on the sale was reached on July 18. A transition team from Platinum is already in place at American Racing, working with the management team to transition the company.Founded in 1956 by Romeo Palamides, an early drag racing innovator, American Racing Equipment is today one of the leading producers of lightweight, high performance aftermarket wheels under the American Racing brand (American Racing Vintage, American Racing Pro Series, American Racing Muscle) as well as related brand lines including Twenty Inches Strong, Motegi Racing, Motto, Riax Performance Alloys, and RO-JA Motorsports. The company virtually launched the custom wheels craze in the early 1960s with the introduction of its five-spoke “Torq Thrust” wheel, considered by many aficionados to be the most famous custom wheel of all time.Today, as American Racing approaches its 50th anniversary, the company produces a wide-ranging line of more than 100 precision crafted alloy wheel styles. From state-of-the-art manufacturing facilities, the company distributes more than 1.5 million wheels annually through company-owned, satellite-connected warehouses, an independent distributor system in the United States and through international distributors in over thirty-five countries on four continents. American Racing also continues to offer the latest generation of the original, authentic Torq Thrust for the discriminating enthusiast.Further information about the company is available at www.americanracing.com.About Platinum EquityPlatinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, software, telecommunications, logistics, manufacturing, health care products and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum Equity has acquired more than 50 businesses and built a portfolio of operating companies that today has more than 40,000 employees, more than 600,000 customer sites and aggregate annual revenue of approximately $8 billion. In 2004, Platinum was named the 32nd largest private company in the United Stated by Forbes magazine.CONTACTPlatinum EquityMark BarnhillSenior Vice PresidentCorporate and Investor Relations(310) 228-9514mbarnhill@platinumequity.com
Global Crossing Announces Sale of Small Business Group to Platinum Equity's Matrix Telecom
Home / News / Global Crossing Announces Sale Of Small Business Group To
Florham Park, NJ -- Global Crossing (NASDAQ: GLBC) announced today that it has entered into a purchase agreement to sell its small business group (SBG) to Matrix Telecom®, a Platinum Equity company. Under the agreement, Global Crossing will receive $40.5 million in gross cash proceeds for SBG. In addition, Global Crossing and Matrix have entered into a long term carrier services agreement under which Global Crossing will offer its full suite of voice, data and IP services to Matrix. The sale is subject to regulatory approval and is expected to close during the third quarter of 2005. Global Crossing expects approximately $35 million in net cash proceeds from the transaction after giving effect to estimated purchase price adjustments, the payment of certain fees and the deduction of certain retained liabilities. In addition to the purchase agreement, Global Crossing and Matrix Telecom, a telecommunications provider to the small- and medium-sized enterprise market, have entered into a long-term carrier services agreement, under which Global Crossing will provide to Matrix wholesale voice, data and IP services. Revenues under this carrier services agreement are in addition to the cash proceeds mentioned above. “Since our primary focus is providing converged communications services to global enterprises and carriers, the sale of SBG allows us to concentrate on our core business,” said John Legere, Global Crossing’s chief executive officer. “I am immensely proud of the team of dedicated employees who are part of serving this set of customers and know that they will play a key role in Matrix’s continued success. We’re thankful to Platinum Equity for their diligence and hard work throughout this transaction, and we look forward to providing communications services and support to Matrix throughout the transition of SBG.” SBG is a provider of voice and data products to an estimated 30,000 small- to medium-sized business enterprises in the U.S., which have remained customers of SBG for an average of more than seven years. SBG’s current product offering includes switched and dedicated voice services and data applications. Matrix Telecom is one of 21 operating companies in the portfolio of Platinum Equity, a global acquisition firm based in Los Angeles and headed by CEO Tom Gores. “We are very excited to bring SBG and Matrix together,” said Mr. Gores. “The two businesses complement one another extremely well, and their integration will create value and enhance the capabilities of both. The combination should be welcome news to customers, employees and business partners of both SBG and Matrix.” The Blackstone Group served as a financial advisor to Global Crossing on the transaction. In October 2004, Global Crossing announced that it was focusing its operations to better capitalize on its IP network and capabilities. The company’s plan includes concentrating on global enterprise offerings, new carrier data offerings and additional means of distributing its suite of IP capabilities to end-users. Also as part of this initiative, Global Crossing announced that it is de-emphasizing certain non-strategic areas of its business, including the small- to medium-sized enterprise space. ABOUT MATRIX TELECOM Matrix Telecom® Inc., a Platinum Equity company, is a fully integrated, facilities-based telecommunications carrier providing premium quality voice and data services to a nationwide customer base. Headquartered in Dallas, Texas, Matrix Telecom offers a complete line of voice, data, and Voice over IP products servicing the residential and business markets. Matrix Telecom offers wholesale products direct to other carriers, as well as retail products distributed through resellers and agents. Matrix Telecom is committed to providing customized communication services that exceed customers’ expectations for quality, value, and reliability. For more information, please visit the Matrix Telecom website at www.matrixvalue.com. ABOUT PLATINUM EQUITY Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized in the merger, acquisition, and operation of mission-critical services and solutions companies. Since its founding in 1995, the firm has completed more than 65 transactions, building a diverse portfolio of companies with nearly 40,000 employees, more than 600,000 customer sites, and a multi-billion dollar revenue base. Platinum Equity in 2004 was named the 32nd largest private company in the United States by Forbes magazine. ABOUT GLOBAL CROSSING Global Crossing (NASDAQ: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 6 continents around the globe. The company’s global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world’s enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. Please visit www.globalcrossing.com for more information about Global Crossing. # # # SAFE HARBOR STATEMENT Statements made in this press release that state the company's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. These statements contain words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "will," "seek," or similar expressions. Such statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements, including the conditioning of the company's continued listing on the NASDAQ National Market on its timely filing with the SEC of all periodic reports for all reporting periods ending on or prior to September 30, 2005; the company's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; legal and contractual restrictions on the payment of dividends and the inter-company transfer of funds by the company's subsidiaries, including restrictions under the senior secured notes indenture applicable to the company's primary operating subsidiary in the UK; the likelihood that the prices the company charges for its services will continue to decrease; the company's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on favorable terms; the success of the company's business realignment plan and the realization of anticipated cost savings; the consequences of any inadvertent violation of the company's Network Security Agreement with the U.S. Government; the impact of actual and potential customers' bankruptcies on the company's sales prospects and results of operations; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; the impact on the company's competitiveness of its technology choices; the company's dependence on third parties for many functions; political, legal and other risks due to the company's substantial international operations; and other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. The company undertakes no duty to update information contained in this press release or in other public disclosures at any time.
Platinum Equity Acquires Universal Group Direct and Dial Business Units from Vivendi Universal
Home / News / Platinum Equity Acquires Universal Group Direct And Dial
Businesses in France and the United Kingdom are Europe’s Largest Club-Based Marketers of DVD, CD and Video Game Entertainment LOS ANGELES (Jan. 17, 2005) – Platinum Equity announced today that it has acquired Universal Group Direct and DIAL – Europe’s largest club-based marketers of DVD, CD and video game entertainment – from Vivendi Universal. Financial terms were not disclosed. The two businesses serve about 1.5 million active customers and generate annual revenue of approximately €170 million. “These are the leading home entertainment distribution clubs in Europe, with a loyal base of longstanding customers and strong relationships with premier media and entertainment companies whose products they distribute,” said Brian Wall, Platinum Equity’s managing director for Europe. Universal Group Direct is based in the United Kingdom and DIAL in France. They generate revenue from a club model in which customers contract via an introductory offer to purchase entertainment products over time. Platinum intends to operate the two under a unified business strategy that leverages best practices at both. “This is a very attractive investment for us in a business that generates recurring revenue from a large membership base and has great potential for growth – particularly as the DVD market expands in Europe,” Mr. Wall said. The acquisition was completed in late December, and a transition is now underway. Ross Young, senior vice president for operations at Platinum, is leading the transition. Mr. Young said UGD and DIAL are at the forefront of businesses using technology and online tools to enhance their business-to-consumer distribution model. “We are very excited about these businesses and their potential for future growth," Mr. Young said. “We believe Platinum’s operations team can add significant value in helping the management team integrate complementary functions and create an efficient and flexible platform for growth.” About Platinum Equity Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized in the merger, acquisition and operation of mission-critical services and solutions companies. Since its founding in 1995, Platinum Equity has acquired more than 50 businesses and built a portfolio of companies with nearly 40,000 employees and more than 600,000 customer sites. With revenue approaching $8 billion, Platinum Equity in 2004 was named the 32nd largest private company in the United States by Forbes magazine. About Vivendi Universal Vivendi Universal is a leader in media and telecommunications with activities in television and film (Canal+ Group), music (Universal Music Group), interactive games (VU Games) and fixed mobile telecommunications (SFR Cegetel Group and Maroc Telecom).
Data2Logistics
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Data2Logistics Active Corporate Divestiture North America Technology Software & Services Processes freight bills, mines data and consults on logistics for the global freight market Company Overview Data2Logistics provides freight processing services for a global suite of customersProvides a single-source solution for all modes of freight — including air, LTL, TL, parcel, overnight express, ocean and rail shipments Transaction Description Acquired in October 2001 Years in Business 50+ 12631 Westlinks Drive, Suite 3, Fort Myers, FL 33913 United States www.data2logistics.com Processes freight bills, mines data and consults on logistics for the global freight market Company Overview Data2Logistics provides freight processing services for a global suite of customersProvides a single-source solution for all modes of freight — including air, LTL, TL, parcel, overnight express, ocean and rail shipments Years in Business 50+ Transaction Description Acquired in October 2001 12631 Westlinks Drive, Suite 3, Fort Myers, FL 33913 United States www.data2logistics.com Latest Article How commitment and resources drive Platinum Equity’s European momentum July 18, 2022 Platinum executives explain how they execute European strategy that has driven nearly $6 billion in total transactions since June 2020The ability to execute European-headquartered global, pan-European, and domestic complex de... Read More Latest Article Platinum Equity to Acquire Majority Interest in Global Intimate Apparel Company Hop Lun June 20, 2022 Investment in Hong Kong-based lingerie and swimwear company led by Platinum’s Singapore investment team LOS ANGELES and SINGAPORE, June 20, 2022 — Platinum Equity announced today the signing of a definitive agreement t... Read More Latest Article Solenis’ ‘commitment to people, resilient culture’ receives WSJ recognition June 15, 2022 When Platinum Equity announced the $5.25 billion acquisition of Solenis, the firm was highly complementary of the water treatment chemistry company’s leadership. “It is an exceptionally well-run organization with an ou... Read More previous Next Our Portfolio Explore the full Platinum Equity portfolio of companies by transaction type, industry, location or ownership status. BROWSE NOW
DCA Services
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DCA Services Corporate Divestiture Active North America Technology Business Services Creates custom software solutions Company Overview DCA Services provides custom development services with no implementation fees, no monthly minimums and no long-term contracts Transaction Description Acquired in March 1997 Years in Business 35+ 300 North Meridian Avenue, Oklahoma City, OK 73107 United States www.dcaservices.com Creates custom software solutions Company Overview DCA Services provides custom development services with no implementation fees, no monthly minimums and no long-term contracts Years in Business 35+ Transaction Description Acquired in March 1997 300 North Meridian Avenue, Oklahoma City, OK 73107 United States www.dcaservices.com Latest Article How commitment and resources drive Platinum Equity’s European momentum July 18, 2022 Platinum executives explain how they execute European strategy that has driven nearly $6 billion in total transactions since June 2020The ability to execute European-headquartered global, pan-European, and domestic complex de... Read More Latest Article Platinum Equity to Acquire Majority Interest in Global Intimate Apparel Company Hop Lun June 20, 2022 Investment in Hong Kong-based lingerie and swimwear company led by Platinum’s Singapore investment team LOS ANGELES and SINGAPORE, June 20, 2022 — Platinum Equity announced today the signing of a definitive agreement t... Read More Latest Article Solenis’ ‘commitment to people, resilient culture’ receives WSJ recognition June 15, 2022 When Platinum Equity announced the $5.25 billion acquisition of Solenis, the firm was highly complementary of the water treatment chemistry company’s leadership. “It is an exceptionally well-run organization with an ou... Read More previous Next Our Portfolio Explore the full Platinum Equity portfolio of companies by transaction type, industry, location or ownership status. BROWSE NOW
