LOS ANGELES – June 10, 2021 – Platinum Equity today announced a definitive agreement to acquire a majority stake in SVP-Singer Holdings Inc. and its wholly-owned subsidiaries (SVP Worldwide), a consumer sewing machine company. The existing shareholders and management have retained a significant stake in the capital. Financial terms were not disclosed. The transaction is expected to be finalized in the third quarter of 2021.
SVP Worldwide represents more than one in three consumer sewing machines sold worldwide through three iconic brands: SINGER®, VIKING® and PFAFF®. The Company’s products are sold through a network of sewing machine dealers, mass retailers, specialty stores, online retailers, distributors and the 180 retail stores operated in-house by the Company.
SVP Global CEO Carl-Martin Lindahl and Executive Chairman Stan Rosenzweig, both of whom joined the company in 2018, will continue in their roles following the change in ownership.
“The company has recently made impressive progress investing in technology and product development, and is on the cusp of a new stage of growth fueled by innovation and continuous operational transformation,” said Jason Price, Managing Director of Platinum Equity. “Carl-Martin, Stan and the entire SVP Worldwide team have done a great job refocusing the business and setting the stage for the next chapter. We fully support the investments they have made and will provide additional financial and operational resources to help accelerate their efforts.
With headquarters in Nashville, Tennessee, and regional headquarters and sales offices in Milan, Shanghai and Mexico City, SVP Worldwide is a global company serving consumers in more than 180 countries. The company’s activities include manufacturing facilities in Asia and Latin America, several 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 in re-energizing our product development capabilities and redoubling our commitment to our dealers and retail partners, but there is still a lot of work to be done,” said Lindahl. “We are delighted with the opportunity to work with the Platinum team, which will bring new perspectives and expertise and further expand our playbook.”
Rosenzweig, whose family has been involved in the sewing industry for three generations, added that he was optimistic about the growth trends in the sector.
“Technology is making sewing more accessible to a wider population with a new demand motivated in part by the interest of a young generation attracted by personalization, self-expression and opportunities to showcase their creativity”, Rosenzweig said. “In developing markets, growth is also being fueled by the emergence of a middle class and a ‘need to sew’ segment that uses sewing machines to generate income. It is an exciting time for the industry.
In addition to organic growth opportunities, Platinum Equity plans to use its M&A resources to help the business grow.
“An upcoming list of exciting new products positions the SVP Worldwide brands to gain market share, and we also believe there are additional avenues for growth through complementary acquisitions, particularly in sewing-related accessories and other products, ”added Price.
Latham and Watkins is legal counsel to Platinum Equity in connection with the acquisition of SVP Worldwide. BofA Securities is financing 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.
Posted on June 10, 2021
Source: Platinum Action