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May 24, 2021
Platinum Equity has announced signing an agreement to acquire a controlling stake in Fifth Sun. The acquisition will be made through Platinum Equity portfolio company Mad Engine. The transaction is expected to be completed during the second quarter of 2021. Financial terms were not disclosed.
“As the e-commerce channel for apparel and accessories continues to grow, demand for digital solutions like direct-to-garment and print-on-demand is accelerating,” says Jacob Kotzubei, partner, Platinum Equity. “Bringing these two companies together will not only better meet the changing needs of licensors and customers, it will also help both businesses diversify and capture opportunities in this substantial emerging market.”
Fifth Sun is a designer and distributor of print-on-demand manufacturing and supply chain systems for a range of licensed, generic and private label graphic apparel. Mad Engine, acquired by Platinum Equity in December 2020, is a full-service, global apparel and accessories company that creates, designs, produces and distributes a full range of licensed, private label and branded products.
“Our partnership with Platinum has allowed us to pursue tremendous growth in a short period of time and Fifth Sun represents a unique opportunity to continue along that path,” says Danish Gajiani, chief executive officer, Mad Engine. “As the premier technology-driven solutions provider in our space, we believe Dan and the team at Fifth Sun have built an extraordinary business with an impressive culture, and we look forward to working together. Integrating their capabilities in technology, global supply chain, infrastructure, design and performance track record into Mad Engine will make us even more competitive on a global scale."
Dan Gonzales, who founded Fifth Sun in 1994, will stay on as a senior strategy advisor.
"I'm excited to work with the Platinum and Mad Engine teams on the next phase of growth and evolution for our company," says Dan Gonzales, founder, Fifth Sun. "Joining forces will help diversify our product mix, grow our license portfolio and capitalize our company to take advantage of the multitude of opportunities that the Fifth Sun engine was built for. Danish and I are excited to bring together two best-of-class companies with great synergies and growth opportunity for our employees. I am proud of the Fifth Sun team, and it is deserving of this opportunity."
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