Platinum Equity Acquires Majority of Interest of Hop Lun
The completion of the acquisition of a controlling stake in Hop Lun, an undergarment and swimwear company based in Hong Kong, from its founder Erik Ryd has been announced by Platinum Equity today. The financial details of the transaction remain undisclosed.
Founded in 1992 by Mr. Ryd and headquartered in Hong Kong, Hop Lun is renowned as one of the largest designers and manufacturers of undergarments and swimwear in the US, UK, and EU.
Jacob Kotzubei, the partner at Platinum Equity's Singapore office overseeing the firm's operations, expressed, “We have developed a strong relationship with Erik over the years and hold him in high regard both as an individual and as an entrepreneur. His exceptional leadership has cultivated a culture at Hop Lun centered on trust, transparency, reliability, and creativity, which are fundamental to the company's success."
The investment in Hop Lun was spearheaded by Platinum Equity's Singapore branch.
Mr. Kotzubei added, “Many businesses in Asia owned by founders or families are in need of a partner who can provide not just capital but also operational expertise. They seek to enhance their value proposition while safeguarding their legacy and positioning their enterprise for further growth. We possess extensive experience in such scenarios and are enthusiastic about collaborating with Erik and the Hop Lun team in their forthcoming endeavors."
Mr. Ryd will retain a significant ownership stake in Hop Lun and will continue to play a leading role in the company's future trajectory.
Reflecting on the collaboration, Mr. Ryd remarked, “I take pride in the accomplishments of the business we have established over the last three decades and am confident that Platinum will propel our progress. While Platinum’s financial and operational resources will be invaluable, the shared values and vision with their team are of even greater significance. I believe we are an excellent match. Our teams have diligently collaborated on transformative initiatives, and we anticipate a smooth and productive transition."
Hop Lun, with a workforce exceeding 30,000 individuals and manufacturing facilities in Bangladesh, China, Ethiopia, and Indonesia, supplies products to major global retailers and produces items under its proprietary brands.
Matthew Louie, the managing director at Platinum Equity, emphasized, "Hop Lun represents an opportune platform with various avenues for growth and development. We aim to enhance investments in expanding the company, both organically and through strategic mergers and acquisitions."
Regarding sustainability measures, Mr. Louie stated, “Hop Lun has demonstrated a commendable commitment to environmental, social, and governance (ESG) practices and is exploring innovative collaborations with brands to introduce more sustainable products to the market. Emphasizing the use of sustainable materials and recyclable resources from post-consumer waste will be a key focus for us moving forward."
Hop Lun was advised by BDA Partners and Goldman Sachs & Co. as financial advisors in the sale to Platinum Equity, with legal counsel provided by Mayer Brown LLP. Legal counsel for Platinum Equity in the acquisition of Hop Lun was furnished by Latham & Watkins LLP, while Kirkland & Ellis LLP provided guidance on debt financing.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $36 billion of assets under management and a portfolio of approximately 50 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 27 years Platinum Equity has completed more than 350 acquisitions.
