Platinum Equity, a private equity firm with $47 billion in assets under management, has acquired two promotional products suppliers that specialize in apparel: Georgia-based Augusta Sportswear Brands (ASB, asi/37461) and Founder Sport Group (FSG), a North Carolina-headquartered firm whose brands include Badger Sport (asi/37876). Financial terms of the deals between the privately held companies were not released.

Platinum plans to integrate Augusta and Founder Sport Group together over time, with business continuing as usual as the integration plays out, executives said.

“We believe that integrating the two companies has the potential to further reduce customer turnaround times, create a more efficient supply chain, and accelerate the impact of sublimation [printing] and other technologies throughout the ecosystem,” said Platinum Managing Director Jason Price.

ASB's portfolio of brands includes Augusta Sportswear, Holloway, High Five, Pacific Headwear, Russell Athletic, and CCM. Beyond Badger, FSG offers brands like Under Armour, Alleson, C2, ProSphere, Garb Athletics, and Flash. FSG has gotten attention in promo for its use of robots in distribution centers.

Bringing all those brands and various service supports together will create a powerhouse supplier strongly positioned to meet the needs of youth sports and related markets, according to Platinum’s leaders. “The integrated portfolio of brands will allow the combined company to serve the full range of on-field and off-field or fanwear needs of youth sports teams, clubs, schools and leagues,” Platinum said.

Price shared that Platinum has experience with apparel companies. In 2020, the firm acquired supplier Mad Engine, which provides licensed, branded and private-label apparel and accessories. In 2022, Platinum bought international apparel company Hop Lun.

Jostens (asi/237542), a Minnesota-based firm known for offering customized yearbooks, class rings, championship rings, graduation products and more to the high school and collegiate markets, is part of Platinum’s portfolio. Notably, the Detroit Pistons National Basketball Association (NBA) franchise is also in Platinum’s portfolio.

It may seem a bit removed from day-to-day concerns, but this is one of the biggest "macro" topics in the #promoproducts industry. https://t.co/Mt1pQcGKcf

— Chris Ruvo (@ChrisR_ASI) August 25, 2023

PE’s Push Into Promo Continues

Within the last decade, private equity (PE) investment in the promotional products market has soared, generating a seismic impact on the competitive landscape by fueling blockbuster mergers and acquisitions and helping to spur operational and technology advancements among big industry players. Market leaders and PE investors alike believe cash from PE will continue, over time, to pour into the branded merch space – a divisive prospect.

One factor attracting PE investors is that promo remains largely fragmented, meaning there is ample opportunity to buy an industry company and scale it through operational improvements and subsequent acquisitions. Platinum said such fragmentation and related opportunity was part of the reason it bought ASB and FSG.

“We saw the potential to combine two established companies very rapidly and orchestrate a transaction that we believe leverages our unique integration and operational capabilities [to bring to] life a better customer experience.” Louis Samson, Platinum Equity

“The core market for youth sports apparel and accessories has grown steadily over the past decade, but the ecosystem is highly fragmented and, in many ways, inefficient,” said Platinum President Louis Samson. “We saw the potential to combine two established companies very rapidly and orchestrate a transaction that we believe leverages our unique integration and operational capabilities with the goal of improving those industry dynamics and ultimately bringing to life a better customer experience.”

Since its founding in 1995, Platinum Equity has completed more than 450 acquisitions. Beyond apparel, the firm has acquired and operated companies in industries that include manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. Its current portfolio consists of about 50 companies that serve customers around the world.