Los Angeles, August 6--Platinum Equity has completed the acquisition of DyStar, a provider of dyes and services to the fashion and textile industry. Previously, the company was owned jointly by BASF, Bayer and Hoechst/Aventis.
As a Platinum company, DyStar will remain focused on its core strengths of providing the highest quality and innovation in textile dyes and best-in-class customer service.
"DyStar is the pre-eminent global brand in fashion and textile dyes, and we have a great deal of confidence in the company's future," said Johnny O. Lopez, executive vice president for mergers and acquisitions at Platinum Equity.
Lopez said that Platinum Equity chairman Tom T. Gores expects DyStar to be a strong operating company for Platinum, with significant potential as both a standalone business and a potential platform for future add-on acquisitions.
"Tom feels very strongly that this company has world-class capabilities and will be a cornerstone in our portfolio," Lopez said. "As the management team develops its long-term business strategy, one of our top priorities will be to examine strategic add-on acquisitions that could help accelerate its growth."
DyStar manufactures, sells and distributes dyestuffs to the fashion and textile industries. It also provides related services including supply chain management and research and development into new dye products.
Headquartered in Frankfurt, Germany, the company has approximately 3,900 employees and sales or manufacturing operations in more than 20 countries in Europe, Asia, Africa and the Americas. It posted sales of approximately US $1 billion (EUR 800 million) in 2003.
Platinum has assembled a global team of operations executives who will assist in transitioning DyStar and its subsidiaries, including Color Solutions International and the former textile dyes business of Yorkshire Americas Inc., which was acquired by DyStar earlier this year.
Platinum also confirmed the appointment of Dr. Clemens Willee as chief executive officer, which Joubran said would help ensure a smooth transition.
"We have a great deal of global momentum right now," said Phil Norment, president of portfolio operations for Platinum. "This is our second billion-dollar-revenue acquisition of the year, and we have a third pending. We've expanded our global footprint, particularly in Europe, and we're continuing to aggressively pursue new transactions."
