Affinity is said to be valuing the $ 1 billion sale of Trimco

Affinity is said to be valuing the $ 1 billion sale of Trimco

Buyout firm Affinity Equity Partners is thinking about an offer of its Hong Kong-based garment label creator Trimco Group after getting interest from possible purchasers, individuals acquainted with the matter said. A sale could esteem Trimco at more than $1 billion and would probably draw in other private equity firms, individuals said, asking not to be recognized because the data is private. A proper bidding process could start off as soon as this quarter, individuals said.

The company is expected to report roughly $200 million of revenue for 2021 and about $65 million of earnings before interest, taxes, depreciation and amortization, with both measures rising nearly 25%, according to the people. Last year, Affinity completed a dividend recapitalization and refinancing for Trimco on the back of its profit growth, they said.

Founded in 1978, Trimco makes garment labels, radio frequency identification tags, packaging and trimming products and store decorations for some of the biggest apparel retailers, according to its website. The group operates through its Clotex, Labelon and A-Tex units and counts more than 1,700 employees in 21 countries, serving more than 800 brands and 8,600 manufacturers globally.

Deliberations are at an early stage, and Affinity could still decide to hold onto the business for longer, the people said. A representative for Affinity didn’t immediately respond to a request for comment.

Private equity firms have been busy snapping up assets in the former British colony. Last year, Baring Private Equity Asia agreed to acquire Tricor Group, a Hong Kong-based business services firm, for $2.76 billion including debt.

Affinity bought Trimco from Partners Group Holding AG for $520 million in 2018. The Asia Pacific-focused buyout firm has about $14 billion of assets and funds under management. It counts offices in Hong Kong, Singapore, Seoul, Sydney and Beijing.

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