Gibson Dunn, Alston Guide Platinum’s Apparel Deal for Fifth Sun

Gibson, Dunn & Crutcher and Alston & Bird advised Platinum Equity on the acquisition by its portfolio company, Mad Engine, of a controlling stake in graphic apparel designer Fifth Sun.

Buchalter represented Chico, Calif.-based Fifth Sun, which is being sold by Dan Gonzales, who founded the company in 1994 and is staying on as a senior strategy adviser. Gonzales retains a “meaningful” equity interest in the combined company, according to a statement.

Financial terms weren’t disclosed for the transaction, expected to close in the second quarter.

Fifth Sun designs, distributes, and uses technology to innovate print-on-demand manufacturing and supply chain systems for licensed, generic, and private label graphic apparel.

San Diego-based Mad Engine, acquired by Platinum Equity in December 2020, designs, produces, and distributes apparel and accessories, managing a portfolio of licenses from brands including Disney, Warner Marvel, Star Wars, and others.

“As the e-commerce channel for apparel and accessories continues to grow, demand for digital solutions like direct-to-garment and print-on-demand is accelerating,” said Platinum Equity partner Jacob Kotzubei. “Bringing these two companies together will not only better meet the changing needs of licensors and customers, it will also help both businesses diversify and capture opportunities in this substantial emerging market.”