Platinum Equity has acquired a controlling stake in leading apparel company Mad Engine from affiliates of the company’s current ownership group, which has owned the business since 2011.
The existing shareholders and management have retained a meaningful equity interest and will continue to serve in leadership roles.
It comes after Mad Engine which is a full-service, global apparel and accessories company has seen its accessories range which includes watches, grow in recent years.
Platinum Equity partner, Jacob Kotzubei, said: “From its roots as a small, narrowly focused company in San Diego, Mad Engine has grown into one of the world’s leading providers of apparel and a trusted partner to many of the world’s most iconic brands.”
Adding: “The company is a well-established, scalable platform operating in a highly fragmented industry, which creates a perfect opportunity to continue investing in and growing the business. We have great respect for everything Mad Engine has accomplished and our team is excited to help maximize the company’s potential.”
While Mad Engine CEO, Danish Gajiani, said: “We are thrilled to be joining forces with Platinum and are confident that they are the perfect partner for us,” said Mad Engine CEO Danish Gajiani. “Their fervent desire to grow the business is very exciting for all of us at Mad Engine.”
Mad Engine has multiple sales, design, and operational facilities and a talented team of designers, artists, merchandisers and product developers.
The company’s business has expanded beyond men’s and boy’s t-shirts to include fashion tops and bottoms, denim, dresses, outerwear, pajamas, underwear, hats and beanies, backpacks, purses, watches, and sunglasses across a wide spectrum of categories and geographies.
The Mad Engine deal represents the seventh platform investment by Platinum Equity’s Small Cap team, including five completed during 2020.
Lincoln International acted as the exclusive investment banking representative for Mad Engine and Wells Fargo Capital Finance is supporting the transaction and will remain the company’s lending partner.