Platinum Equity announced that the acquisition of a controlling stake in international apparel company Hop Lun from company founder Erik Ryd has been completed. Financial terms were not disclosed.
Founded by Mr. Ryd in 1992 and headquartered in Hong Kong, Hop Lun is one of the world’s largest designers and manufacturers of undergarments and swimwear sold in the US, UK and EU.
“We have gotten to know Erik very well over the past several years and have great respect for him as a person and as an entrepreneur,” said Jacob Kotzubei, the partner in Platinum Equity’s Los Angeles headquarters who oversees the firm’s Singapore-based team. “He is an inspirational leader who has instilled in Hop Lun a culture of trust, transparency, reliability and creativity that serves as the foundation for the company’s success.”
The Hop Lun investment was led by Platinum Equity’s Singapore office.
“There are many founder or family-owned businesses in Asia facing succession or other issues that need a partner who can not only provide capital, but also operational expertise,” added Mr. Kotzubei. “They are looking to create additional value while also protecting their legacy and setting up their business for a new stage of growth. We have a lot of experience in those situations and are excited to work alongside Erik and the Hop Lun team on the next step in their journey.”
Mr. Ryd retained a significant stake in Hop Lun and will continue to help lead the business going forward.
“I am proud of the business we have built over the last 30 years and am confident Platinum will help accelerate our success,” said Mr. Ryd. “Platinum’s financial and operational resources will be tremendously helpful, but more importantly their team shares our values and our vision for the future. I believe we are a perfect fit. Our teams have been hard at work collaborating on transformation initiatives and we expect a seamless and productive transition.”
Hop Lun employs more than 30,000 people and has manufacturing operations in Bangladesh, China, Ethiopia and Indonesia. The company produces products for many of the world’s largest global retailers as well as for its own in-house brands.
“Hop Lun is an ideal platform with multiple ways to evolve and expand,” said Matthew Louie, managing director at Platinum Equity. “We expect to accelerate investments in growing the company, both organically and through strategic M&A.”
“Hop Lun also has made an impressive commitment to ESG and is increasingly looking at new ways to partner with brands to bring more sustainable products to market,” added Mr. Louie. “The innovative use of sustainable fabrics and post-consumer recyclable materials will be an important priority for us going forward.”
BDA Partners and Goldman Sachs & Co. served as financial advisors to Hop Lun on the sale to Platinum Equity. Mayer Brown LLP served as Hop Lun’s legal counsel.
Latham & Watkins LLP provided legal counsel and Kirkland & Ellis LLP provided debt financing counsel to Platinum Equity on the acquisition of Hop Lun.