Platinum Equity to Acquire Wire Harness and Electrical Distribution Business from Alcoa

Platinum Equity today announced that it has signed a definitive agreement to purchase the wire harness and electrical distribution business of Alcoa (NYSE:AA). Financial terms of the acquisition were not disclosed. The transaction is expected to be completed by the end of the second quarter of 2009.

Separately, Platinum also announced today that it has acquired a majority stake in Canvas Systems LLC, a global supplier of used and refurbished enterprise-class IT equipment and services. A press release announcing details of the Canvas acquisition is available at www.platinumequity.com.

The Alcoa transaction is one of several pending deals in Platinum’s pipeline, including the recently announced acquisition of the San Diego Union-Tribune, which is expected to close during the second quarter.

“Many businesses are struggling and need a partner with a steady hand, deep operational expertise and the ability to navigate through these times,” said Platinum Equity Chairman and CEO Tom Gores. “We’re fortunate to have the knowledge, experience and capital required right now to help these businesses survive, and to be positioned to thrive when the markets eventually rebound.”

The wire harness and electrical distribution business is the largest piece of Alcoa’s Electrical and Electronic Solutions division, and its customers include major domestic and international automotive original equipment manufacturers and tier-one suppliers. The sale includes operations in 13 countries and involves approximately 17,500 employees.

“The automotive sector plays well to our strengths,” said Phil Norment, partner at Platinum responsible for all aspects of business strategy and operations at Platinum’s portfolio companies. “It’s an industry requiring transformation, yet filled with hard-working, talented people committed to rolling up their sleeves and getting the job done. We’ve spent the last several years working in and around the auto industry and believe strongly in its potential to thrive.”

Platinum’s current portfolio includes Acument Global Technologies, a full-service provider of fastening systems to the automotive, aerospace, construction, electronics, industrial equipment and non-automotive transportation industries that Platinum acquired from Textron in 2006.

Other Platinum operating companies with significant automotive-related business include 3B Fibreglass, a manufacturer of thermoplastics and reinforced fibreglass products, and DyStar, a manufacturer of high-quality textile dyestuffs, leather and other specialty textile auxiliary products.

Platinum’s M&A&O® approach to investing focuses on acquiring businesses that need operational support and can benefit from Platinum’s extensive in-house capabilities and expertise in transition, integration and operations. Through nearly 100 acquisitions in the complex operational turnaround market, the firm has a consistent record of value creation.

About Platinum Equity

Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.