Platinum Equity

Industry	Private Equity
Founded	1995
Founder(s)	Tom Gores, Chairman & CEO
Headquarters	Beverly Hills, California, United States
Key people	David Anglin Rob Archambault John Diggins Robert J. Joubran Eva Kalawski, General Counsel and Secretary Jacob Kotzubei Johnny O. Lopez Phillip Norment Mary Ann Sigler, Chief Financial Officer Brian Wall Robert J. Wentworth
Products	Investments, private equity funds, leveraged buyouts
Employees	30,000
Website	www.platinumequity.com

Platinum Equity, LLC is a private equity investment firm founded by Tom Gores in 1995. The firm focuses on leveraged buyout investments of established companies in the U.S. and Europe.

Platinum Equity is headquartered in Beverly Hills, California with regional offices in Boston, New York and London. Top business publications have recognized Platinum as one of the most important private companies in America. In 2010, Platinum Equity was recognized as one of the largest and fastest growing private companies in America by ranking #31 on Forbes’ Largest Private Companies list for 2010^[1] and #1 on the 2010 Los Angeles Business Journal list of LA's Largest Private Companies.^[2]

The firm has a diversified capital base that includes the assets of its portfolio companies, and capital commitments from institutional investors in the firm's private equity fund vehicles, Platinum Equity Capital Partners and Platinum Equity Capital Partners II. Institutional investors in the fund vehicles include a diverse cross section of public and private pension funds, insurance companies, endowments and family offices in North America, Europe and Japan.^[3]

History[link]

Platinum Equity was founded in 1995 by Tom Gores. Platinum Equity’s first acquisition was LSI, a company that generated computer graphics to re-create accidents for courtroom testimony. Tom Gores purchased LSI for $200,000, then focused on servicing existing customers and returning the company to profitability.^[4]

Over the next five years, between July 1996 and September 2001, Tom Gores' wholly owned fund (Platinum Equity, LLC) made 32 acquisitions with $226 million, and realized $940 million on those investments. These acquisitions included a call center (Foresight Software), networking gear (Racal Electronics), and voice and data service (Williams Communications).^[4] BusinessWeek ranked Platinum Equity number 10 on its 1999 list of the country’s top 20 private IT organizations, based on 1998 revenues.^[5] Throughout these early years, Tom Gores broke many private equity rules including specializing in the tech sector and using his own money as equity, and leveraging against it.^[6]

During this same time period of acquisition growth, nine of the eleven current partners joined the firm. These partners include Johnny Lopez (1995), David Anglin (1996), Robert Joubran (1996), Phil Norment (1997) and Brian Wall (2000). Additionally, several partners joined through key acquisitions starting in 1999 with Robert Wentworth^[7] during the acquisition of Alden Electronics’ operating assets.^[8] Then through the acquisition of Pilot Software from Cognizant Corporation in 1997 ^[9] Rob Archambault, John Diggins and Eva Kalawski joined the firm.^[10]

The firm’s first fund, Platinum Equity Capital Partners, was raised in 2004 and had a 62.5% net internal rate of return as of June 30, 2009.^[11] This stellar track record played a role in the firms's second fundraise, Platinum Equity Capital Partners II, which closed in September 2008 despite uncertainty in the financial markets. For Platinum Equity Capital Partners II, the firm initially sought a $1.5 billion leveraged buyout fund and nearly doubled it by raising $2.75 billion.^[12]

In 2009, during the financial crisis, Platinum Equity acquired 14 companies in the first 11 months of 2009, eight of them full buyouts.^[13] This acquisition activity put it among the most active private equity firms through 3Q 2009.^[14]

In November 2011, Platinum Equity has bought image sensor business from Kodak which was short on cash. The price was not disclosed, but prediction was about $100–200 million.^[15]

Investment Strategy[link]

The firm employs an investment strategy that it has trademarked, "M&A&O", which integrates traditional M&A with operational expertise. Throughout the transaction, transition and ownership, the firm’s in-house teams apply operational guidance and resources in order to maximize value.^[16] This unique strategy means the firm often acts more like a strategic buyer of companies than a financial buyer. After an acquisition, Platinum Equity often invests in additional businesses, equipment, people and facilities that give its holdings a stronger position for the long haul.^[17]

Investments[link]

Since 1995, Platinum Equity has acquired over 115 businesses across a broad array of industries, including information technology, telecommunications, logistics and distribution, industrials, manufacturing, media, real estate and automotive. Those acquisitions represent more than $27.5 billion in aggregate annual revenue at the time of acquisition.^[18]

• Information Technology – In October 2004, the firm completed the acquisition of CompuCom Systems, Inc. which was one of the largest public-to-private transactions in 2004.^[19] Then, in December 2004 the company acquired General Electric’s IT Solutions division. The merger brought CompuCom to $1.7 billion in annual revenue and more than $500 million in services.^[20] The business was sold to Court Square Capital Partners in 2007.^[21]

• Logistics and Distribution - In 2002, Platinum combined Health Care Products, a division of Royal Philips Electronics, and Diagnostic Imaging, a subsidiary of PSS World Medical into a single company called SourceOne Healthcare Technologies. Both companies were distributors of radiology products like film, chemicals and lead shields. Together, they had $1.3 billion in revenue, making SourceOne dominant in the very fragmented $11.5 billion marketplace in which it competed.^[22] Merry X-Ray acquired SouceOne Healthcare Technologies from Platinum Equity in November 2005.^[23]

• Industrials – PNA Group, a metals processor, was acquired in May 2006 from TUI AG. At the time of acquisition, PNA included three companies. While in Platinum Equity’s portfolio PNA gained a seasoned metals CEO, Maurice S. Nelson, Jr. and added three locations.^[17] Platinum Equity sold PNA Group to publicly traded Reliance Steel & Aluminum Co.(NYSE: RS) in August 2008 for $300 million. The purchase price, together with the $181 million in accumulated profits, represented 27 times Platinum’s original investment of $17.5 million just two years earlier.^[24]

Current Portfolio of Companies[link]

• 3B The Fibreglass Company (2008)^[25]
• Acument Global Technologies (2006)
• AEES (2009)^[26]
• Alliance Entertainment (2010)
• Americatel Corporation (2006)
• Canvas Systems (2009)^[24]
• Contego Packaging Group
• Data2Logistics (2002)
• DCA Services (1997)
• Geesink Norba Group (2009)
• iET Solutions (2003)
• Image Sensor Solutions (2011)
• International Offshore Services (2009)
• Keystone Automotive Operations (2011)
• Matrix Business Technologies (1999)
• Maxim Crane Works (2008)
• MegaPath (2010)
• Palace Sports and Entertainment (2011)
• PBH Marine Group (2010)^[27]
• PEAK Technologies (2005)
• Pomeroy (2009)
• Quark, Inc. (2011)
• Ryerson, Inc. (2007)^[28]
• Schutt Sports (2010)
• SCM Metal Products, Inc. (2008)
• The San Diego Union-Tribune (2009)^[29]
• Turf Care Supply Corp. (2005)
• Eco Broker Platinum (2007)
• Ulticom (2010)
• USRobotics (2005)
• Vanguard Networks (2001)
• Wheel Pros, Inc. (2008)

References[link]

1. ^ "#31 Platinum Equity". Forbes.com. http://www.forbes.com/lists/2010/21/private-companies-10_Platinum-Equity_50I2.html. Retrieved 2011-02-13. 
2. ^ Angeles, Los (2010-10-19). "2010 Largest Private Companies List". Los Angeles Business Journal. http://www.labusinessjournal.com/lalists/?djoPage=view_html&djoPid=6892. Retrieved 2011-08-14. 
3. ^ Deborah Crowe (September 3, 2008) Platinum Equity Closes $2.75 Billion Private Equity Fund.Los Angeles Business Journal.
4. ^ ^{a b} Steven Bertoni (October 19, 2009). Ready to Play. Forbes Magazine.
5. ^ Larry Armstrong (June 21, 1999). The Leading Private Info-Tech Companies. BusinessWeek Online.
6. ^ Phyllis Berman (July 9, 2001). Buyout Buccaneer. Forbes.
7. ^ Platinum Equity lists partners, officers. Meadville Tribune. September 14, 2007.
8. ^ “Alden to sell Metrorolical and imaging operations.” Boston Business Journal. December 20, 1996.
9. ^ “Pilot Software Finally Gets Away from Parent Cognizant.” Computer Business Review. August 11, 1997.
10. ^ Platinum Equity lists partners, officers. Meadville Tribune. September 14, 2007.
11. ^ Repolishing Platinum, Readers Say Section. Forbes Magazine. November 2, 2009.
12. ^ Russ Banham (January 5, 2010). CFOs to Watch: Keeping the Deals Coming. Treasury & Risk.
13. ^ Russ Banham (January 5, 2010). CFOs to Watch: Keeping the Deals Coming. Treasury & Risk.
14. ^ The Private Equity Breakdown 4Q 2009. PitchBook.
15. ^ "Short On Cash, Kodak Sells Its Sensor Business". http://techcrunch.com/2011/11/07/short-on-cash-kodak-sells-its-sensor-business/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29. Retrieved November 8, 2011. 
16. ^ M&A&O (company website)
17. ^ ^{a b} Steven B. Weiner (July/August 2008 Issue ). Fresh Eyes. Forward Magazine.
18. ^ Company Profile
19. ^ “Platinum Equity Completes Acquisition of GE IT Solutions; Former General Electric Unit Will Be Integrated With CompuCom Systems, Inc". BNET. December 1, 2004
20. ^ “Platinum Equity Buys GE's IT Solutions.” VARBusiness. December 4, 2004.
21. ^ Platinum Equity Completes Sale of CompuCom Systems to Affiliate of Court Square Capital Partners. TMC News. October 3, 2007.
22. ^ Phyllis Berman (January 22, 2003). Tom Gores’ X-Ray Vision. Forbes.
23. ^ “Merry X-Ray Acquires SourceOne Healthcare Technologies from Platinum Equity.” BNET. November 21, 2005.
24. ^ ^{a b} Deborah Crowe (April 30, 2009). Platinum Equity Buys IT Company. Los Angeles Business Journal.
25. ^ “New organisation unveiled at 3B, The Fibreglass Company.” Press Release. April 30, 2008.
26. ^ "AEES Launches New Brand Identity, Marks New Vision as a Stand-Alone Global Supplier.” PR Newswire. September 10, 2009.
27. ^ Platinum Equity Buys Four Winns, Glastron, Wellcraft, Ranger. Boattest.com. January 27, 2010.
28. ^ Steven B. Weiner (July/August 2008 Issue ). Fresh Eyes. Forward Magazine.
29. ^ RICHARD PÉREZ-PEÑA (March 18, 2009). Buyout Firm Acquires San Diego Paper. New York Times.

External links[link]

• Official website
• America’s Largest Private Companies 2010. Forbes.
• Platinum Equity LinkedIn Profile

v t e Private equity and venture capital investment firms Investment strategy Venture · Growth · Mezzanine · Secondaries · Leveraged buyout History History of private equity and venture capital · Early history of private equity · Private equity in the 1980s · Private equity in the 1990s · Private equity in the 2000s Investors Corporations · Institutional Investors · Pension funds · Insurance companies · Endowments · Investment Banks · Merchant banks · Fund of funds · High net worth individuals · Angel investors · Family offices · Sovereign wealth funds Private equity firms · Venture capital firms · Portfolio companies

Tom Gores (1964 - ) is an American billionaire with an estimated current net worth of $2.5 billion dollars. He appears on the Forbes list of 2011 World's Billionaires.^[1] On June 1, 2011, Tom Gores and Platinum Equity became the owners of the National Basketball Association’s (NBA) Detroit Pistons.

Biography[link]

Tom Gores was born in Nazareth, Israel to a Greek father and Lebanese mother.^[2] His father owned a construction company. In 1968, the family moved to Genesee, Michigan. While a student at Genesee High School, Gores played defensive back in football, middle infielder in baseball, and guard in basketball.^[3] He received a scholarship to attend Michigan State University, where he graduated in 1986 with a Bachelor of Science degree in construction management.^[4] He spent his twenties learning the buyout business with his older brother Alec.

Gores lives in Beverly Hills with his wife and three children. He also has a house in Grosse Ile, Michigan.^[5]

Business[link]

As a global private-equity magnate, Gores was estimated in 2011 by Forbes to be the 159th-richest American with a $2.5 billion fortune. He founded the Beverly Hills, California based Platinum Equity LLC in 1995 with the intent to acquire non-core divisions of Fortune 1000 corporations.^[6] Over the past five years, the firm has earned between $8 billion and $12 billion annually in revenue with over 100 companies in a wide variety of industries. Platinum Equity has since expanded its investment criteria to include public-to-private transactions and acquisitions from private sellers. Since its founding, the firm has acquired more than 130 companies in industries that include technology and IT services, manufacturing, industrials, distribution, transportation and logistics, and equipment rentals. ^[7] In 2010, Platinum Equity was recognized as one of the largest and fastest growing private companies in America by ranking #31 on Forbes’ Largest Private Companies list for 2010^[8] and #1 on the 2010 Los Angeles Business Journal list of LA's Largest Private Companies.^[9]

Among Platinum's acquisitions are the Troy-based metal fastener manufacturer Acument Global Technologies, bought in 2006 for $630 million from Textron. In May 2009, Platinum bought The San Diego Union-Tribune from Copley Press, reportedly for $30 million. In January 2010, Gores picked up Cadillac-based recreational powerboat manufacturer Four Winns LLC and assets of bankrupt Minneapolis-based Genmar Holdings Inc.^[4]

On June 1, 2011, it was announced that Gores had bought the Detroit Pistons, along with Palace Sports and Entertainment, from the wife of the late Bill Davidson, Karen Davidson.

Press[link]

Gores was featured on the April 2010 cover of Mergers & Acquisitions magazine as its “Pro of the Year.” ^[10] In addition, Gores was featured on the Summer 2011 cover of C-Suite Quarterly with an article entitled “Tom Gores On Balancing Family, Business, and The Detroit Pistons.” ^[11]

Philanthropy[link]

Tom Gores supports several philanthropic organizations, ^[12] and serves on the board of trustees for the Los Angeles County Museum of Art (LACMA).^[13] He was also a member of the board of directors at St. Joseph's Hospital^[where?] and UCLA Medical Center.

Gores and his brother Alec donated $250,000 to Genesee High School in honor of Tom and Julia Joubran's 50th wedding anniversary in 2002.

References[link]

External links[link]

• Homepage
• Tom Gores @ Twitter
• Forbes Worlds Billionaires
• Platinum Equity profile of Tom
• Ulticom closes in France

v t e Private equity and venture capital investors Investment strategy Buyout · Venture · Growth · Mezzanine · Secondaries History History of private equity and venture capital · Early history of private equity · Private equity in the 1980s · Private equity in the 1990s · Private equity in the 2000s Investor types Private equity investors · Venture capitalists · Corporate raiders