Rainbow West Apparel (RW Designs), a private label house, was acquired by Platinum Equity portfolio company Hop Lun, a Hong Kong-based designer and manufacturer of undergarments and swimwear.
Founded in 1993, RW Designs is a Los Angeles, CA-based business co-founded by Esther Maya. The company specializes in swimwear but also manufactures ready-to-wear, cover-ups, outerwear, lingerie, and loungewear. The company notes that its clients include Free People, WalMart, FabFitFun, Underclub, Ross, and Burlington. Owned labels include Power 2 The Flower and Blue C.
“Since we first joined forces with Platinum Equity, we have been seeking opportunities to better serve retail partners in the U.S. market,” said Hop Lun Founder and CEO Erik Ryd. “Partnering with Esther and the RW team is an important part of that strategy. This combination will allow us to offer RW Designs’ sample and design capabilities to our customers, which is a great benefit for those who want more flexibility and shorter lead times.”
“The RW team and I are excited to join Hop Lun. We look forward to leveraging Hop Lun’s vast resources and manufacturing scale throughout several countries of origin to provide even better and broader services and consistency to our customers,” said Maya. “We are thrilled at the prospect of creating a vertical opportunity for buyers alongside of a hybrid model, allowing for more flexibility with inventory needs.”
Hop Lun reported it employs over 26,000 people with manufacturing operations in Bangladesh, China, Ethiopia, and Indonesia. The company produces products for global retailers and in-house brands.
“We believe Hop Lun is proving to be an excellent platform with multiple ways to evolve and expand,” said Platinum Equity Co-President Jacob Kotzubei and Managing Director Matthew Louie in a joint statement. “We are working with Erik and the company’s leadership team to identify and pursue additional opportunities for growth, both organically and through strategic M&A.”
Latham & Watkins LLP provided Hop Lun with legal counsel on acquiring RW Designs. Montminy & Co served as a financial advisor, and Christen Bartelt was RW Designs’ legal counsel on the transaction.
Photo courtesy RW Designs
