Buyout Firm Affinity Is Said to Weigh $1 Billion Trimco Sale

(Bloomberg) -- Buyout firm Affinity Equity Partners is considering a sale of its Hong Kong-based garment label maker Trimco Group after receiving interest from potential buyers, people familiar with the matter said.

A sale could value Trimco at more than $1 billion and would likely attract other private equity firms, the people said, asking not to be identified because the information is private. A formal bidding process could kick off as early as this quarter, the people 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.

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.

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.

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.

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.

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