Platinum Equity buys Hong Kong lingerie business Hop Lun
US-based private equity firm Platinum Equity has agreed to acquire Hop Lun, a Hong Kong-headquartered producer of fashion lingerie and swimwear that serves a global client base.
The size of the transaction was not disclosed. Platinum’s previous investment activity in Asia has focused on industrial manufacturing. It acquired Compart Systems in 2016 and PCI in 2019, writing equity cheques in the USD 100m-USD 150m range. Both companies have been exited within the last 18 months to strategic buyers.
Hop Lun was founded by Erik Ryd in 1992 and now employs more than 30,000 people with manufacturing operations in Bangladesh, China, Ethiopia, and Indonesia. The company primarily supplies large global retailers and claims to be a top provider of bra solutions in the US, UK, and EU.
It has also developed several in-house brands, including Dorina, HLC, and Janet Reger. The latter launched last year after Hop Lun secured a global licensing deal with UK-based Janet Reger, which was founded in the 1960s by a lingerie designer of the same name who is credited with transforming Britain’s attitude to underwear.
Ryd will retain a minority stake in the business and his management team will work with the new owners. Platinum plans to build out the company’s production capabilities, customer base, and own-brand portfolio. Expansion is likely to be organic and through M&A.
"We have known Erik for a long time and have closely tracked Hop Lun's growth and performance over the past several years," said Jacob Kotzubei, a Los Angeles-based partner at Platinum who oversees the Singapore team responsible for leading the investment.
"Erik is an energetic and passionate entrepreneur who cares deeply about the company's employees and customers, and he has had a meaningful impact on the evolution of the industry."
Headquartered in Los Angeles, Platinum has approximately USD 36bn in assets under management and a portfolio of around 50 operating companies. It is currently deploying two funds: Platinum Equity Capital Partners V, a USD 10bn global buyout fund; and Platinum Equity Small Cap Fund, a USD 1.5bn vehicle mandated to pursue control opportunities in the lower middle market.
BDA Partners and Goldman Sachs served as financial advisors to Hop Lun, with Mayer Brown providing legal counsel. Platinum relied on Latham & Watkins for legal counsel and on Kirkland & Ellis for debt financing counsel.
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