Putting Capital to Work

Delivering Speed and Certainty in an Uncertain Time

- - - - - - - - - - - - - -
While Platinum Equity's large in-house operations team is aggressively managing the firm's portfolio companies by implementing custom playbooks at every operating company, the M&A teams are actively pursuing transactions and have demonstrated the firm's ability to transact with speed and certainty.
 
Scroll down to see our recent activity and our deal criteria.

We are intensely focused on the health of our people, our firm and our portfolio companies during this global pandemic. We are taking the steps needed to keep our team safe while ensuring the continuity of our business. We also continue pursuing new investment opportunities. We have access to capital and a lot of experience investing in dislocated markets. We are adjusting our models and adapting every day, but our M&A teams are still hard at work.”

— Platinum Equity Chairman and CEO Tom Gores

9 Platform Acquisitions in 12 months

READ STORY »

Farnese Vini

Private Transaction

Acquired March 2020

Food & Beverage

Biscuit International

Private Transaction

Acquired February 2020

Food & Beverage

Cision

Public-to-Private Transaction

Acquired January 2020

Technology

Centerfield

Private Transaction

Acquired December 2019

Technology

De Wave Group

Private Transaction

Acquired October 2019

Industrials

TruckPro

Private Transaction

Acquired October 2019

Automotive Distribution

Iberconsa

Private Transaction

Acquired May 2019

Food & Beverage

Livingston

Private Transaction

Acquired April 2019

Business Services

PCI Limited

Public-to-Private
Acquired April 2019

Industrials

Show More

18 Add-Ons in 12 months

Logo for Digital Ventures (Centerfield)

Digital Ventures (Centerfield)

January 2020

Logo for Wesco Aircraft (Pattonair)

Wesco Aircraft (Pattonair)

January 2020

Logo for NTR Rents (USS)

NTR Rents (USS)

December 2019

Logo for S&B Porta-Bowl Restrooms & Subs (USS)

S&B Porta-Bowl Restrooms & Subs (USS)

November 2019

Logo for A&A Portables (USS)

A&A Portables (USS)

October 2019

Logo for PBS Rentals, Inc and PBS Services, Inc. (USS)

PBS Rentals, Inc and PBS Services, Inc. (USS)

October 2019

Logo for Mike's Flooring Companies (ILG)

Mike's Flooring Companies (ILG)

September 2019

Logo for Adams Aviation Supply Company (Pattonair)

Adams Aviation Supply Company (Pattonair)

September 2019

Logo for Dave's Septic Services (USS)

Dave's Septic Services (USS)

August 2019

Logo for Flooring Systems (ILG)

Flooring Systems (ILG)

August 2019

Logo for Klein's Restoration Services (Yak Access)

Klein's Restoration Services (Yak Access)

July 2019

Logo for Multi-Color (WS Packaging)

Multi-Color (WS Packaging)

July 2019

Logo for Alpha Precision Turning & Engineering Sdn Bhd (Compart Systems)

Alpha Precision Turning & Engineering Sdn Bhd (Compart Systems)

June 2019

Logo for Johnny on the Spot (USS)

Johnny on the Spot (USS)

May 2019

Logo for Fincallorca (Awaze)

Fincallorca (Awaze)

April 2019

Logo for Travel a la Carte (Awaze)

Travel a la Carte (Awaze)

April 2019

Logo for Posh Restrooms and Sin City Portables (USS)

Posh Restrooms and Sin City Portables (USS)

April 2019

Logo for Estuary Cottages (Awaze)

Estuary Cottages (Awaze)

April 2019

Show More
Show MoreShow Less  

11 Divestitures in 12 months

Logo for Vertiv

Vertiv

Industrial Technology
February 2020

Logo for PAE

PAE

Aerospace, Defense & Government Services
February 2020

Logo for Embassy Suites Boca Raton

Embassy Suites Boca Raton

Hospitality
December 2019

Logo for Sheraton Pittsburgh

Sheraton Pittsburgh

Hospitality
November 2019

Logo for Artesyn Embedded Power

Artesyn Embedded Power

Technology
September 2019

Logo for Holiday Inn San Antonio International Airport

Holiday Inn San Antonio International Airport

Hospitality
July 2019

Logo for The Citizen Hotel

The Citizen Hotel

Hospitality
July 2019

Logo for Artesyn Embedded Computing

Artesyn Embedded Computing

Technology 
July 2019

Logo for Battlespace Flight Services, LLC (from PAE)

Battlespace Flight Services, LLC (from PAE)

Aerospace, Defense & Government Services
May 2019

Logo for Data Blue

Data Blue

Technology & Telecom
April 2019

Logo for GreenLine Systems (from PAE)

GreenLine Systems (from PAE)

Aerospace, Defense & Government Services
April 2019

Show More
Show MoreShow Less  

10 Industries in 12 months

Aerospace, Defense & Government Services

Building Products & Construction

Business Services

Show More

Distribution

Equipment Rental

Food & Beverage

Hospitality

Industrials

Packaging

Technology & Telecom

3 Continents in 12 months

Asia
Europe
North America

Our Deal Criteria

- - - - - - - - - - - - - -

The Firm has substantial access to capital and is actively looking to provide divestiture solutions via two funds: Platinum Equity Capital Partners V, a $10 Billion global buy-out fund and the $1.5B Platinum Equity Small Cap Fund. Platinum Equity seeks to acquire business spanning a wide range of industries, sizes and geographies that can benefit from our highly specialized M&A&O® strategy.

Download an Intro to Platinum
Acquisition Profile
  • Businesses with enterprise values
    from $100 Million to $10 Billion
  • All industries
  • All geographies
Transaction Capabilities
  • Corporate Divestitures
  • Public-to-Private Transactions
  • Private Transactions
  • Special Situations
Download an
Intro to Platinum
The April 6 issue of Axios' daily dealmakers newsletter called Platinum Equity's acquisition of Farnese Vini the day's most notable transaction.

What set Farnese apart?

Business editor Dan Primack wrote: "Because the deal actually closed, despite everything that's happened in the U.S. and Italy since it was agreed to in December."

Bankers from New York to Milan had questions.

How did the firm close the deal with much of the world shut down?

Why do it given everything that changed between sign and close?

Louis Samson, a partner at Platinum Equity and member of the firm's Investment Committee, shed some light.

“We’d been preparing to face a recession for the past few years and our approach to portfolio construction had already become more defensive, with an increased emphasis on risk mitigation, diversification, and assets that are less correlated to market cycles,” Mr. Samson said. “Farnese checked all those boxes, which gave us great comfort proceeding in spite of everything going on.”
 

"We'd been preparing to face a recession for the past few years and our approach to portfolio construction had already become more defensive, with an increased emphasis on risk mitigation, diversification, and assets that are less correlated to market cycles," Mr. Samson said. "Farnese checked all those boxes, which gave us great comfort proceeding in spite of everything going on."


The wine industry is historically resistant to economic downturns and Farnese's business model provides strong downside protection, a cornerstone of Platinum Equity's investment strategy.

The deal team had also developed a solid relationship with Farnese co-founder Valentino Sciotti, who retains a minority stake, and felt comfortable he could steer the company through a protracted downturn.

But the main reason was even simpler: Platinum had to keep its word.

"It was the right thing to do," said Filippo Rossi, a Platinum Equity vice president based in London who works on the firm's Small Cap team that executed the transaction. "There could have been ways of delaying it, which would have been the easy way out, but we decided to stick to the agreement.

"We also managed to close on the agreed upon date, which no one was expecting."
 

The genesis of a deal


Headquartered in Pescara, Italy, Farnese markets and distributes wines from southern and central Italy. The company acquires grapes from local farmers, oversees production and markets wines under specialty labels to customers internationally.

Founded in 1994, Farnese produces more than 24 million bottles and reported revenue of $81 million U.S. dollars in 2019. Farnese wines are well-received, having won many awards. The distributor's portfolio includes 21 wine makers.

Farnese buys raw material (mostly bulk wine, some grapes) at low cost in central/southern Italy where there is structural excess grape production, converts to attractive bottled wines and sells abroad via an effective marketing and distribution machine. This optimizes the perceived quality/price ratio for customers.

The company's business model attracted multiple bidders.

"The secret sauce of this company is that (co-founder Sciotti) found a very good business model and he's been very good at creating very strong relationships with the grape growers in different regions of Italy – a lot of them in the south," said Fernando Goni, a Platinum Equity principal on the Small Cap team in London. "So he gives the suppliers a lot of security and that allows him to develop quality wine for a good price."

Platinum was invited to bid on the company in October, which was later in the process when compared to other prospective buyers.

The good relationship with Sciotti helped. The potential to open the U.S. market to the product was another factor.

But what really helped Platinum stand out was the deal team's small cap focus and understanding of the lower middle market, backed by the resources of a much larger global firm.

The deal then moved quickly and an announcement of a definitive agreement came Jan. 10.
 

COVID-19 challenges


Italy confirmed its first COVID-19 case on Jan. 31.

By the beginning of March, the highly infectious disease had spread to all regions of the country.

This was the backdrop as the Small Cap team moved to close the deal.

Confidence remained high in the company's performance. Farnese performed well the first two months of 2020 with business up 16%.
 

"There will be a recovery and people are going to turn to private equity houses they can trust," Goni said. "This will help us over the next 12-to-18 months as we see new opportunities. We proved we can deliver – even in very difficult circumstances."


"Farnese has an innovative business model that has proven resilient during challenging times and delivered impressive growth over the past two decades," Mr. Samson said in a release at the time.

But pandemic created obstacles.

Without face-to-face meetings, phone calls and video conferencing were the modes of communication.

The process demanded strong collaboration between Platinum teams in Beverly Hills, New York, Greenwich and London.

"I think those with smaller resources would have struggled to find the right solutions to do a deal in the timeframe that we did it," Mr. Goni said.

That created a sense of accomplishment when the deal was completed in Milan on March 31, and confidence the experience would pay off down the road as well.

"There will be a recovery and people are going to turn to private equity houses they can trust," Goni said. "This will help us over the next 12-to-18 months as we see new opportunities. We proved we can deliver – even in very difficult circumstances."


Download the PDF