Platinum Equity announced that it has acquired a controlling stake in the 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 an equity interest and will continue to serve in leadership roles.
“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,” said Platinum Equity Partner Jacob Kotzubei. “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.”
Founded in 1987, Mad Engine manages a portfolio of licenses with corporations, brands, and entertainment businesses including Disney, Warner Brothers, Epic Games, IMG, Nickelodeon, Netflix, Coca-Cola, and others. Company-owned brands include Lifted Research Group (LRG), Neff Headwear and Mighty Fine. Mad Engine’s products are sold through retail partners including Walmart, Target, Old Navy, Kohl’s, and JC Penney, in addition to specialty retailers, e-commerce channels and other outlets.
“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.
“Platinum has a lot of experience working with businesses like ours and will provide us strategic, financial and operational support, enabling us to pursue an ambitious new phase of growth and expansion,” added Mad Engine President and COO Faizan Bakali.
The Mad Engine deal represents the seventh platform investment by Platinum Equity’s Small Cap team including five completed during 2020.
Gibson, Dunn & Crutcher LLP served as Platinum Equity’s legal counsel on the acquisition of Mad Engine. Buchalter represented Mad Engine. Lincoln International acted as the exclusive investment banking representative for Mad Engine. Wells Fargo Capital Finance is supporting the transaction and will remain the company’s lending partner.
Photo courtesy Mad Engine