Platinum Equity has agreed to acquire a majority stake in SVP-Singer Holdings (“SVP Worldwide”), the world’s largest consumer sewing machine company.
Singer was formed in 1851 by Isaac Singer and Edward Clark. The company began marketing its consumer sewing machines in 1855 and won first prize at the Paris world’s fair that year becoming one of the largest manufacturers of consumer sewing machines by 1860. The company filed for bankruptcy in 1999 and was acquired by Kohlberg & Company in 2004. In 2006, Kohlberg combined Singer with Swedish sewing machine manufacturer VSM Group (Viking Sewing Machines) and in 2018, SVP Worldwide was sold by Kohlberg to Ares Management.
SVP Worldwide accounts for one of every three consumer sewing machines sold worldwide through three brands – Singer, Viking, and Pfaff.
At the completion of Platinum’s buy – expected during the third quarter – both CEO Carl-Martin Lindahl and Executive Chairman Stan Rosenzweig will continue in their roles with the business.
“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.”
“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,” said Jason Price, a managing director at Platinum. “We fully support the investments they’ve made, and we will bring additional financial and operational resources to bear to help accelerate their efforts.”
Nashville, Tennessee-headquartered SVP Worldwide has regional offices in Milan, Shanghai, and Mexico City and manufacturing facilities across Asia and Latin America. The company’s estimated annual revenue is over $500 million and employs more than 2,000 people worldwide.
“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.
Platinum Equity specializes in mergers, acquisitions, and operations, currently operating with more than $25 billion AUM. Platinum was formed in 1995 by Tom Gores.
© 2021 Private Equity Professional | June 22, 2021
The post Platinum Sews Up Singer appeared first on Private Equity Professional.
