Investment in Hong Kong-based undergarment and swimwear company led by Platinum's Singapore investment team
LOS ANGELES and SINGAPORE, Sept. 30, 2022 /PRNewswire/ -- Platinum Equity announced today that the acquisition of a controlling stake in international apparel company Hop Lun from company founder Erik Ryd has been completed. 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 undergarments and swimwear sold in the US, UK and EU.
"We have gotten to know Erik very well over the past several years and have great respect for him as a person and as an entrepreneur," said Jacob Kotzubei, the partner in Platinum Equity's Los Angeles headquarters who oversees the firm's Singapore-based team. "He is an inspirational leader who has instilled in Hop Lun a culture of trust, transparency, reliability and creativity that serves as the foundation for the company's success."
The Hop Lun investment was led by Platinum Equity's Singapore office.
"There are many founder or family-owned businesses in Asia facing succession or other issues that need a partner who can not only provide capital, but also operational expertise," added Mr. Kotzubei. "They are looking to create additional value while also protecting their legacy and setting up their business for a new stage of growth. We have a lot of experience in those situations and are excited to work alongside Erik and the Hop Lun team on the next step in their journey."
Mr. Ryd retained a significant stake in Hop Lun and will continue to help lead the business going forward.
"I am proud of the business we have built over the last 30 years and am confident Platinum will help accelerate our success," said Mr. Ryd. "Platinum's financial and operational resources will be tremendously helpful, but more importantly their team shares our values and our vision for the future. I believe we are a perfect fit. Our teams have been hard at work collaborating on transformation initiatives and we expect a seamless and productive transition."
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 expect to accelerate investments in growing the company, both organically and through strategic M&A."
"Hop Lun also has made an impressive commitment to ESG and is increasingly looking at new ways to partner with brands to bring more sustainable products to market," added Mr. Louie. "The innovative use of sustainable fabrics and post-consumer recyclable materials will be an important priority for us going forward."
BDA Partners and Goldman Sachs & Co. served as financial advisors to Hop Lun on the sale to Platinum Equity. Mayer Brown LLP served as Hop Lun's legal counsel.
Latham & Watkins LLP provided legal counsel and Kirkland & Ellis LLP provided debt financing counsel to Platinum Equity on the acquisition of Hop Lun.
For more discussion from the deal team about the Hop Lun investment: "How acquisition of apparel company Hop Lun is an example of Platinum Equity's ability to 'win over' founder-owned companies"
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.
SOURCE Platinum Equity