Beverly Hills-based private equity firm Platinum Equity hit the ground running this year, announcing four acquisitions and one sale in the first few weeks of January.
The firm — which has $47 billion in assets under management – took ownership of two dairy brands, two sports-apparel suppliers and a rum-blending operation at the beginning of the month, then announced the sale of a Pennsylvania power plant on Jan. 16.
While none of the announcements specified with which fund – or funds – these acquisitions were financed, Platinum Equity currently sits on significant capital.
Last May the firm announced it raised $10.7 billion for its sixth flagship fund – the largest in its three-decade history.
Deal flow remained relatively steady for the firm, while private equity-led buyout volumes globally declined 38% from 2022 levels, according to data from the financial markets platform Dealogic.
According to the Business Journal’s latest local private equity firm rankings, Platinum Equity was the fourth largest firm in Los Angeles last year.
The recent transactions join existing platforms. After acquiring Augusta Sportswear Brands and Founder SportGroup, Platinum plans to integrate the complementary operations to streamline costs – following a playbook set by the firm after previous apparel acquisitions
The acquisition of E&A Sheer, a 300-year-old the rum-blending operation based in Amsterdam, is new territory for the private equity firm. While the private equity firm owns an Italian wine producer and exporter, the rum operation far exceeds scale across suppliers, with E&A Sheer relying on 40 countries for sugarcane supply; this could be an impetus for Platinum to streamline operations. Louis Samson, co-president of Platinum, said, however, that the rum category has “promising prospects” driven by strong consumer demand.
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