- Gores owns 51% of the NBA franchise he bought in 2011
- Transaction shows he's in for the long haul, partner says
Platinum Equity founder and Detroit Pistons owner Tom Gores is buying his firm’s stake in the National Basketball Association team, giving him 100 percent of the franchise, according to a partner in the firm.
Gores, personally, has held a 51 percent stake in the club since 2011. It isn’t known how much he’s paying for Platinum’s 49 percent holding.
“Tom now owns 100 percent of the equity in the team after buying out the minority interest that was held by one of our investment funds,” said Mark Barnhill, a partner at Platinum Equity. “From a leadership and control standpoint, it doesn’t really change anything.”
The Pistons are worth $810 million, according to Forbes magazine. Gores also bought the team’s arena, the Palace of Auburn Hills.
“Private equity funds have a lifecycle and exit investments over time, and because one of our funds had a minority equity interest in the team some folks questioned when we bought the team whether Tom was in this for the long haul or not,” Barnhill said. “This transaction should put that question to bed. ”
Gores is a Flint, Michigan, native and Michigan State University graduate. Beverly Hills, California-based Platinum owns companies in a range of industries, including technology, industrials and automotive supply.