Platinum Equity received bankruptcy court approval of its acquisition of Schutt Sports. U.S. Bankruptcy Judge Kevin J. Carey had indicated he would approve the sale once final language has been drafted after ruling that the auction process was fair. Robert Erb, Schutt Sports CEO since 2007, will continue to lead the company under Platinum Equity's ownership.
Schutt was sold to Platinum Equity LLC, for about $33.1 million following a 19-hour bidding marathon between Platinum and Rawlings. Schutt Sports, based in Litchfield, IL, filed for bankruptcy in September. Platinum had made a stalking horse offer to buy Schutt in November in U.S. Bankruptcy Court in Wilmington, Del., which led to the auction.
Platinum, the Beverly Hills, CA-based private-equity firm run by billionaire Tom Gores, has completed almost 100 acquisitions since the company was created in 1995.
“Schutt Sports is a great company with a strong brand, quality products and enormous potential,” said Jacob Kotzubei, partner, Platinum Equity, who led the team pursuing the Schutt acquisition, in a statement. “The business also has a strong management team, talented employees and loyal customers. We are excited to help the company achieve its full potential with the support of Platinum Equity's financial resources and operations expertise.”
“I am grateful for the tremendous loyalty we have received throughout this process and am excited to emerge a stronger, healthier company poised for long-term growth and profitability,” said Erb.”I am especially proud of the continued hard work and support of our outstanding employees, dealers and suppliers. Their extraordinary resolve and commitment to serving our customers is a primary reason we are now positioned for long-term success.”
Kotzubei said that Platinum Equity's operations team is now acting on a plan to assist Schutt Sports following the change in ownership.
“Schutt Sports has done an exceptional job maintaining focus and continuing to serve its customers throughout this process,” said Mr. Kotzubei. “We are now deploying additional operations resources to support their efforts.”
