LOS ANGELES — June 10, 2021— Platinum Equity announced today a definitive agreement to acquire a controlling stake in SVP-Singer Holdings Inc. and its wholly owned subsidiaries (SVP Worldwide), a consumer sewing machine company. Existing shareholders and management have retained a meaningful equity interest. Financial terms were not disclosed. The transaction is expected to be completed during the third quarter of 2021.
SVP Worldwide accounts for more than one out of three consumer sewing machines sold worldwide through three iconic brands: SINGER®, VIKING®, and PFAFF®. The company’s products are sold across a network of sewing machine dealers, mass retailers, specialty shops, online retailers, distributors, and the company’s 180 internally operated retail stores.
SVP Worldwide CEO Carl-Martin Lindahl and Executive Chairman Stan Rosenzweig, who both joined the company in 2018, will continue in their roles following the change in ownership.
“The company has made impressive strides recently by investing in technology and product development, and is on the cusp of a new stage of growth fueled by innovation and continued operational transformation,” said Platinum Equity Managing Director Jason Price. “Carl-Martin, Stan and the entire SVP Worldwide team have done an excellent job refocusing the business and setting the stage for the next chapter. We fully support the investments they’ve made and we will bring additional financial and operational resources to bear to help accelerate their efforts.”
With its corporate headquarters in Nashville, Tenn., and regional headquarters and sales offices in Milan, Shanghai and Mexico City, SVP Worldwide is a global business that serves consumers in more than 180 countries. The company’s operations include manufacturing facilities in Asia and Latin America, multiple R&D centers, including a new state-of-the-art facility in Sweden, a software development center in the United Kingdom, and a global supply chain with distribution centers in all regions.
“We have made good progress reinvigorating our product development capabilities and redoubling our commitment to our dealer and retail partners, but there is a lot more work to be done,” Lindahl said. “We are excited about the opportunity to work with the Platinum team, which will bring new perspectives and expertise to the table and further expand our playbook.”
Rosenzweig, whose family has been involved in the sewing industry for three generations, added he is optimistic about growth trends in the sector.
“Technology is making sewing more accessible to a broader demographic with new demand driven in part by interest from a younger generation attracted to personalization, self-expression and outlets to showcase their creativity,” Rosenzweig said. “In developing markets, growth is also being fueled by an emerging middle class and a ‘need to sew’ segment that uses sewing machines to generate income. It’s an exciting time for the industry.”
In addition to opportunities for organic growth, Platinum Equity expects to use its M&A resources to help the company expand.
“An upcoming slate of exciting new products positions SVP Worldwide brands to gain market share, and we also believe there are additional means for growth through add-on acquisitions, particularly in sewing-related accessories and other products,” added Mr. Price.
Latham and Watkins is serving as legal advisor to Platinum Equity on the acquisition of SVP Worldwide. BofA Securities is providing financing for the transaction.
Sawaya Partners LLC is acting as exclusive financial advisor and Morgan Lewis as legal advisor to SVP Worldwide with respect to the transaction.
Posted June 10, 2021
Source: Platinum Equity
