Platinum Equity Takes Controlling Stake in Mad Engine
It was announced on Jan. 4 that Platinum Equity, a Los Angeles–headquartered investment firm, acquired a controlling stake in Mad Engine, a San Diego–based apparel and accessories company that designs, produces and distributes licensed, branded and private-label products.
The announcement did not disclose the terms of the deal; however, it noted that Mad Engine’s existing shareholders would continue to hold “meaningful equity interest.” Current Mad Engine management will continue to run the company.
Faizan Bakali, Mad Engine’s president and chief operating officer, said that the deal would give his company a crucial base of support.
“Platinum has a lot of experience working with businesses like ours and will provide us strategic, financial and operational support, enabling us to pursue an ambitious new phase of growth and expansion,” Bakali said. “This partnership with Platinum gives us tremendous strength as we continue to serve our retailers, licensor partners and, ultimately, the end consumer.”
Platinum Equity Partner Jacob Kotzubei said that Mad Engine is ready for a new phase of growth.
“The company is a well-established, scalable platform operating in a highly fragmented industry, which creates a perfect opportunity to continue investing in and growing the business. We have great respect for everything Mad Engine has accomplished, and our team is excited to help maximize the company’s potential.”
The deal comes a few years after Mad Engine’s buying spree, in which it acquired several prominent apparel companies and brands. In May 2018, Mad Engine acquired Neff Headwear, an 18-year-old skateboard and snowboard headwear company whose goods had been sold at retailers such as Zumiez. The same year, it also acquired Mighty Fine, a Los Angeles–headquartered brand that primarily makes kids’ and juniors clothing.
In 2017, Mad Engine acquired the Orange County, Calif., streetwear brand Lifted Research Group. The pioneering streetwear brand has been sold at prominent specialty retailers such as Tilly’s, Zumiez and Dillard’s. During the same year, it also acquired Xtreme Worldwide Inc., which focuses on private label and licensed apparel.