Partners Group said Jan. 23 that it has agreed to sell Trimco International Holdings Ltd to Affinity Equity Partners for $520 million. Trimco, of Hong Kong, provides garment labels, tags and trimming products to the apparel sector. Partners Group said the sale generated a 3.4x return on its original investment. Goldman Sachs (Asia) LLC acted as sole financial adviser and Clifford Chance as legal adviser.
Partners Group to exit Trimco, a global provider of labels and brand identification solutions to the apparel sector Partners Group, the global private markets investment manager, has agreed the sale of Trimco International Holdings Limited (“Trimco” or “the Company”), a Hong Kong-headquartered apparel-labeling producer, on behalf of its clients. The Company will be acquired by funds advised by Affinity Equity Partners for a total consideration of USD 520 million, generating a 3.4x return for Partners Group on its original investment.
Founded in Hong Kong in 1978, Trimco provides a full range of garment labels, tags and trimming products to blue chip apparel brands and retailers worldwide. Partners Group acquired Trimco on behalf of its clients in May 2012 and has subsequently worked alongside the senior management team, led by Miranda Kong, the Group CEO and Founder, to oversee a period of expansion in which the Company quadrupled its business and grew from an Asia-centric manufacturing specialist into a global leader in its field. Trimco currently serves more than 500 clients worldwide and has grown from 400 employees in 2012 to more than 1,450 employees today.
Amy Wan, COO of Trimco, comments: “Over the last five years, we have worked hand-in-hand with the Partners Group team during a period of continuous growth and development for our business. Partners Group’s global footprint and expansive network have enabled us to fastforward our international expansion strategy through targeted add-on acquisitions as well as organic growth. As we change ownership, we are proud to reflect on this tremendous growth trajectory.”
Florian Marquis, Senior Vice President, Private Equity Asia, Partners Group, explains: “Our value creation plan was designed to support Trimco’s international expansion. For example, we focused on building out dedicated client relationship teams in key markets including the UK and major Continental European consumer markets, as well as North America. Additionally, Partners Group supported Trimco in expanding its manufacturing footprint in key apparel hubs across Eastern Europe, Turkey, China, and South and Southeast Asia.”
Notable add-on acquisitions during the five-year holding period included the 2015 purchase of Denmark-headquartered A-Tex, also a global provider of brand identity products including labels, hang-tags, packaging solutions and in-store decorations for leading European and US fashion brands.
Cyrus Driver, Managing Director, Head Private Equity Asia, adds: “When we invested into Trimco in 2012, we could see that it had the potential to become a global leader within its sector. Five years later, and following an exceptional partnership with its senior management team and a structured approach to international expansion, the Company has clearly achieved this goal. We wish the Trimco team continued success in the future.”
Goldman Sachs (Asia) LLC. acted as sole financial advisor and Clifford Chance as legal advisor.
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 62 billion (USD 74 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in Denver, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 1,000 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees.