Beverly Hills-based Platinum Equity has agreed to buy a controlling stake in the manufacturer of Singer sewing machines, and the private equity firm plans other tuck-in acquisitions.
Platinum Equity announced plans June 14 to buy a majority of La Vergne, Tenn.-based SVP-Singer Holdings Inc. and its wholly owned subsidiaries, SVP Worldwide.
The transaction is expected to be completed during the third quarter. Financial terms were not disclosed.
SVP Worldwide is the world's largest consumer sewing machine company.
Existing shareholders and management have retained a meaningful equity interest. SVP Worldwide Chief Executive 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.
A Platinum Equity spokesman did not respond to phone calls.
Besides Singer, SVP Worldwide manufactures sewing machines made under the Husqvarna Viking and PFAFF brands.
In addition to opportunities for organic growth, Platinum Equity expects to use its merger and acquisitions resources to help the company expand.
"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," Platinum Equity Managing Director Jason Price said in a statement.
“We fully support the investments they've made and we will bring additional financial and operational resources to bear to help accelerate their efforts,” he added.
SVP's Rosenzweig said the deal will help broaden Singer's reach.
"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," he 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," Rosenzweig added.
SVP Worldwide has regional headquarters and sales offices in Milan, Italy, Shanghai and Mexico City. The company's operations include manufacturing facilities in Asia and Latin America, multiple research and development centers, including a new state-of-the-art facility in Sweden and a software development center in the United Kingdom.
