Platinum Equity to Acquire SVP Worldwide
LOS ANGELES, CA, June 10, 2021 (PRNEWSWIRE) – Platinum Equity announced today a definitive agreement to acquire a controlling stake in SVP-Singer Holdings, Inc. and its wholly owned subsidiaries (“SVP Worldwide”), the world’s largest consumer sewing machine company. Existing shareholders and management have retained a meaningful equity interest. Financial terms were not disclosed. The transaction is expected to be completed during the third quarter of 2021.
SVP Worldwide accounts for more than one out of three consumer sewing machines sold worldwide through three iconic brands: SINGER®, VIKING®, and PFAFF®. The company’s products are sold across a network of sewing machine dealers, mass retailers, specialty shops, online retailers, distributors, and the company’s 180 internally operated retail stores.
SVP Worldwide CEO Carl-Martin Lindahl and Executive Chairman Stan Rosenzweig, who both joined the company in 2018, will continue in their roles following the change in ownership.
“The company has made impressive strides recently by investing in technology and product development, and is on the cusp of a new stage of growth fueled by innovation and continued operational transformation,” said Platinum Equity Managing Director Jason Price. “Carl-Martin, Stan and the entire SVP Worldwide team have done an excellent job refocusing the business and setting the stage for the next chapter. We fully support the investments they’ve made and we will bring additional financial and operational resources to bear to help accelerate their efforts.”
With its corporate headquarters in Nashville, TN, and regional headquarters and sales offices in Milan, Shanghai and Mexico City, SVP Worldwide is a global business that serves consumers in more than 180 countries. The company’s operations include manufacturing facilities in Asia and Latin America, multiple R&D centers, including a new state-of-the-art facility in Sweden, a software development center in the UK, and a global supply chain with distribution centers in all regions.
“We have made good progress reinvigorating our product development capabilities and redoubling our commitment to our dealer and retail partners, but there is a lot more work to be done,” said Mr. Lindahl. “We are excited about the opportunity to work with the Platinum team, which will bring new perspectives and expertise to the table and further expand our playbook.”
Mr. Rosenzweig, whose family has been involved in the sewing industry for three generations, added he is optimistic about growth trends in the sector.
“Technology is making sewing more accessible to a broader demographic with new demand driven in part by interest from a younger generation attracted to personalization, self-expression and outlets to showcase their creativity,” said Mr. Rosenzweig. “In developing markets, growth is also being fueled by an emerging middle class and a ‘need to sew’ segment that uses sewing machines to generate income. It’s an exciting time for the industry.”
In addition to opportunities for organic growth, Platinum Equity expects to use its M&A resources to help the company expand.
“An upcoming slate of exciting new products positions SVP Worldwide brands to gain market share, and we also believe there are additional means for growth through add-on acquisitions, particularly in sewing-related accessories and other products,” added Mr. Price.
Latham and Watkins is serving as legal advisor to Platinum Equity on the acquisition of SVP Worldwide. BofA Securities is providing financing for the transaction.
Sawaya Partners LLC is acting as exclusive financial advisor and Morgan Lewis as legal advisor to SVP Worldwide with respect to the transaction.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 40 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 25 years Platinum Equity has completed more than 300 acquisitions.