Brookfield reportedly in talks to buy Trimco
Brookfield Asset Management is in "advanced" talks to buy Trimco Group, a Hong Kong-based clothing label maker owned by Affinity Equity Partners, for up to $1 billion, Bloomberg reports, citing sources familiar with the matter.
Why it matters: It's a situation worth tracking as Brookfield sounds out banks to arrange the financing for the deal, especially given how difficult it has been recently to line up debt to support M&A transactions, particularly LBOs.
- Brookfield declined to comment, and Affinity and Trimco did not respond to requests for comment.
Details: An agreement could be reached in the coming weeks, according to the report.
- Brookfield emerged as the likely buyer after beating out other PE firms in an auction process.
- Trimco began exploring a sale after receiving takeover interest.
- The report cautioned that a transaction could face delays or fall apart.
By the numbers: The company generated $200 million in revenue in 2021, grew 25% and had EBITDA of $65 million, according to PitchBook.
Flashback: Affinity acquired Trimco from Partners Group Holding for an enterprise value of $520 million in 2018, also according to PitchBook.
Of note: Trimco was founded in 1978 and makes clothing labels, source labels, care tagging, hang tags, badges, patches, buttons and trims, as well as product packaging, store displays and signage, and radio frequency identification (RFID) technology, according to the company's website.
- It also has a digital offering called Product DNA, which helps brands track social compliance and sustainability.