#United States #Los Angeles #Platinum Equity #Solo Group #XD Connects

Platinum Equity to Acquire XD Connects

In a strategic move to strengthen its foothold in the European custom-branded merchandise sector, Platinum Equity has announced a definitive agreement to acquire XD Connects. This transaction marks a significant step in Platinum’s ongoing efforts to consolidate and grow within this fragmented market, filled with untapped opportunities.

Founded in 1986 and based in Rijswijk, the Netherlands, XD Connects is well-known for its role as a leading designer and supplier of corporate gifts and custom-branded products. Their extensive client base, which includes over 5,000 B2B resellers and distributors primarily across Europe, speaks volumes of their influence and operational capacity in the market. The company boasts a robust in-house printing and fulfillment center along with a dedicated design studio, making it a competitive player in the customization of branded merchandise.

The financial details of the deal were not disclosed, but it's important to note that the agreement is subject to standard closing procedures, including obtaining necessary regulatory approvals. This acquisition follows Platinum Equity’s recent announcement regarding its agreement to acquire another European supplier, Solo, enhancing synergy and streamlining operations between the two companies.

According to Louis Samson, Co-President of Platinum Equity, this investment aligns perfectly with their MAO® strategy, which focuses on partnering with strong operators to accelerate their growth through superior operational management and transformative mergers and acquisitions. He expressed confidence in XD Connects being a strategic addition to their portfolio, emphasized by the significant growth opportunities present in the European custom-branded merchandise market.

The growing trend towards consolidation in this market presents an advantageous situation for Platinum Equity. By combining XD Connects with Solo, they aim to create a leading entity that can offer a comprehensive range of products and services while improving efficiencies in customization and fulfillment. Malik Vorderwuelbecke, Managing Director at Platinum Equity, stated that their expanded platform will effectively manage all aspects of product development, procurement, and inventory management.

The envisioned integration is set to enhance the customer experience significantly. By offering a one-stop-shop solution, customers will benefit from greater variety, quicker lead times, improved print quality, and overall better service—enabling them to concentrate on their core business growth in an evolving market landscape.

Albert van der Veen, CEO of XD Connects, expressed enthusiasm over the union with Solo and Platinum Equity, noting that the combined expertise in innovation, sustainability, and customer service will enhance their capacity to meet client needs while unlocking new growth opportunities throughout Europe. This partnership is expected to not only amplify their market position but also to foster a dynamic growth environment that both entities can thrive in.

Furthermore, Latham & Watkins LLP has been appointed as the legal advisor for Platinum Equity in this transaction, ensuring a seamless and compliant acquisition process. As Platinum Equity ventures into this new phase, the industry will be watching closely to see how this acquisition shapes the future of custom-branded merchandise in Europe.

In conclusion, Platinum Equity's acquisition of XD Connects is poised to revolutionize the landscape of custom-branded merchandise, creating a powerhouse that provides innovative solutions while meeting the diverse needs of B2B clients across Europe. With the integration of Solo into the fold, they are set to lead the charge in transforming this market into a more consolidated and efficient space. This move exemplifies Platinum Equity’s commitment to strategic investments that yield long-term growth and operational excellence.