Platinum Equity, a Los Angeles-based private investment group, submitted a winning $32.5 million bid for the assets of Schutt Sports at an auction last week in federal bankruptcy court in Delaware. The successful offer came after a 19-hour bidding marathon between Platinum Equity and Rawlings. Robert Erb, Schutt's CEO since 2007, will continue to lead the company.


Platinum Equity in November had been selected as the stalking horse bidder with an initial $25.2 million bid. Platinum's bid was reportedly selected because the offer included the provision that it could close on the acquisition on Dec. 15. They also agreed to keep Schutt's employees in Litchfield and Salem, IL, for 12 months, and employees in Pennsylvania for three months.


Rawlings, owned by Jarden Corp., stopped making football helmets two decades ago but re-entered the market in July.


Platinum, 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 Platinum Partner Jacob Kotzubei 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 in a statement. “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.”


The bankruptcy filing in September came after the equipment company lost a $29 million patent infringement lawsuit filed by a competitor, Riddell Inc. Riddell, which declined to comment on the Schutt acquisition, has filed a lawsuit to collect on the verdict.