Partners Group-owned Trimco buys A-Tex from Polaris

Founded in 1991, A-Tex provides brand identity products, including labels, hang-tags, packaging solutions and in-store decorations for European and US fashion brands. Polaris, working with management, bought the business from its founder in 2012 for an undisclosed sum and holds a 73% stake.

According to the PE firm's website, A-Tex's annual revenue is DKK438 million ($67.4 million) - up from DKK346 million in 2011 - with EBITDA totaling EUR5 million ($5.7 million). There are 90 people in the company's head office in Denmark, including the design and brand development teams, and 350 other staff handling procurement and distribution, most of them based near manufacturing sites in Asia.

Jan Jakobsen, CEO of A-Tex, said in a statement that the companies are a good match: Trimco has strong production and supply chain capabilities, as well as a sizeable customer portfolio, while A-Tex is a market leader in design-intensive solutions for fashion brand owners.

Trimco, which was set up in 1979, produces garment labels, tags and trimming products through subsidiaries in Hong Kong, China, Thailand, Singapore, India, the UK, Turkey, Romania and Bangladesh. Navis Capital Partners bought the company in 2005 and sold it to Partners Group seven years later. It generated approximately $111.4 million from the investment through a combination of capital gains, dividends and repayment of capital, for a 10x multiple.

Partners Group wanted to help Trimco expand its global footprint. Shortly after the buyout, the add-on acquisition of a UK-headquartered label provider, with operations in Turkey and Romania as well as the UK, was completed. This was expected to nearly double Trimco's consolidated revenues.

"A-Tex has built a unique market position under the current ownership. Its design-led focus makes it a significant and highly-complimentary acquisition for Trimco as it continues the international growth trajectory it started in 2012 under Partners Group's ownership," said Florian Marquis, senior vice president for private equity at Partners Group.

Based in Copenhagen, Polaris focuses on buyout investments in lower mid-market companies in Denmark and Sweden. It currently has more than EUR1 billion under management across three active funds.

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