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 to acquire a controlling stake in international fashion lingerie and swimwear company Hop Lun from company founder Erik Ryd. Financial terms were not disclosed.
Founded by Mr. Ryd in 1992 and headquartered in Hong Kong, Hop Lun is one of the world’s largest designers and manufacturers of intimate apparel and is a top provider of bra solutions in the US, UK and EU.
“We have known Erik for a long time and have closely tracked Hop Lun’s growth and performance over the past several years,” said Jacob Kotzubei, the partner in Platinum Equity’s Los Angeles headquarters who oversees the firm’s Singapore-based team. “Erik is an energetic and passionate entrepreneur who cares deeply about the company’s employees and customers, and he has had a meaningful impact on the evolution of the industry.”
The Hop Lun investment is being led by Platinum Equity’s Singapore office.
“Our team in Asia has a lot of experience helping founder-owned businesses leverage Platinum’s operational expertise and M&A capabilities to maximize their potential,” added Mr. Kotzubei. “We are excited to work alongside Erik and his leadership team, and to bring those same resources to bear for Hop Lun.”
Hop Lun employs more than 30,000 people and has manufacturing operations in Bangladesh, China, Ethiopia and Indonesia. The company produces products for many of the world’s largest global retailers as well as for its own in-house brands.
“Hop Lun is an ideal platform with multiple ways to evolve and expand,” said Matthew Louie, managing director at Platinum Equity. “We are excited to work with Erik to accelerate investments in growing the company, both organically and through strategic M&A, that can expand Hop Lun’s production capabilities, customer base and portfolio of owned brands.”
Mr. Ryd will retain a significant stake in Hop Lun and will continue to help lead the business going forward.
“I am proud of everything we have built over the last three decades and am confident Platinum is the perfect partner for our next phase of growth,” said Mr. Ryd. “Platinum’s operations expertise is well suited to help us navigate the increasing complexity of the apparel business and take advantage of the sector’s continued consolidation.”
The transaction is subject to customary closing conditions and is expected to be completed during the third quarter of 2022.
BDA Partners and Goldman Sachs & Co. are serving as financial advisors to Hop Lun on the sale to Platinum Equity. Mayer Brown LLP is serving as Hop Lun’s legal counsel.
Latham & Watkins LLP is providing legal counsel and Kirkland & Ellis LLP is providing debt financing counsel to Platinum Equity on the acquisition of Hop Lun.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $36 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. 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.