Platinum Equity has signed a definitive agreement to acquire a controlling stake in Fifth Sun from company founder Dan Gonzales. The acquisition will be made through Platinum Equity portfolio company Mad Engine.
Fifth Sun is a designer and technology-driven distributor of print-on-demand manufacturing and supply chain systems for a wide 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.
“As the eCommerce channel for apparel and accessories continues to grow, demand for digital solutions like direct-to-garment and print-on-demand is accelerating,” said Platinum Equity partner Jacob Kotzubei. “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.”
Mad Engine CEO Danish Gajiani commented, “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. 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,” said Mr. Gajiani. “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.”
“I’m excited to work with the Platinum and Mad Engine teams on the next phase of growth and evolution for our company,” said Gonzales. “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.”
Gibson, Dunn & Crutcher LLP and Alston & Bird LLP are serving as Platinum Equity’s legal counsel on the acquisition of Fifth Sun. Lincoln International is serving as financial advisor to Platinum Equity on the transaction. CriticalPoint Partners is serving as financial advisor and Buchalter is providing legal counsel to Fifth Sun. Deutsche Bank, Wells Fargo Capital Finance, and Credit Suisse are providing financing for the transaction.