Auburn Hills, MI-- Billionaire investor Tom Gores has purchased the Detroit Pistons, the Palace of Auburn Hills, DTE Energy Music Theater, and Meadow Brook Music Festival.
NBC25 reported on Gores' interest in the Pistons earlier this year. Gores graduated from Genesee Schools in Genesee County, MI.
The terms of the agreement, which still has to be approved by the NBA's Board of Governors, have not been disclosed.
Gores' own the investment firm Platinum Equity.
"We are pleased to welcome Tom Gores as the new owner of the Detroit Pistons and Palace Sports and Entertainment," said Karen Davidson in a press release. "Just as my late husband, Bill Davidson, was the face of the Pistons, I am confident that Tom will bring the same energy, dedication and love to this organization. I look forward to seeing Tom follow in Bill’s footsteps, and carry on his legacy."
"I am very proud to have this opportunity to be part of such a tremendous organization," Mr. Gores said. "I know it’s been a long process and I appreciate the patience and support of the Detroit community. I have been impressed with the Davidson family and the way it has protected and built such a storied franchise. I grew up here, I am glad to be back, and I am very excited about all the possibilities looking forward."
Comerica Bank, a longtime financing partner of Platinum Equity, will provide financing on the transaction. The transaction is expected to close by June 30, pending league approval and normal closing conditions.
Platinum Equity and Palace Sports and Entertainment issued the following press release:
FOR IMMEDIATE RELEASE
CONTACTS
For Karen Davidson: For Tom Gores and Platinum Equity:
Michael Layne Mark Barnhill
Marx Layne & Co. Platinum Equity
248.320.6202 310.712.1850
mlayne@marxlayne.com mbarnhill@platinumequity.com
KAREN DAVIDSON AND TOM GORES REACH AGREEMENT ON SALE OF DETROIT PISTONS
AUBURN HILLS, MI (April 8, 2011) – Palace Sports and Entertainment (PS&E) and Detroit Pistons Basketball Company (DPBC) owner Karen Davidson today announced a definitive agreement to sell PS&E, DPBC, and their respective assets – including the NBA’s Detroit Pistons, The Palace of Auburn Hills, DTE Energy Music Theatre and the operating rights to Meadow Brook Music Festival – to financier Tom Gores and his investment firm, Platinum Equity.
Terms of the agreement, which is still subject to review and approval by the NBA’s Board of Governors, were not disclosed.
"We are pleased to welcome Tom Gores as the new owner of the Detroit Pistons and Palace Sports and Entertainment," said Karen Davidson. "Just as my late husband, Bill Davidson, was the face of the Pistons, I am confident that Tom will bring the same energy, dedication and love to this organization. I look forward to seeing Tom follow in Bill’s footsteps, and carry on his legacy."
"From the Pistons players, coaches and front office, who helped bring home three world championships, to the management and staff at the Palace, DTE and Meadow Brook, who earned us international recognition, we look forward to facilitating a smooth transition under Tom and achieving even greater success in the future."
Mr. Gores is the Chairman and CEO of Platinum Equity, a global investment firm whose holdings include 34 portfolio companies in such diverse business sectors as technology, media and entertainment, industrials, metals processing, automotive supply, and distribution and logistics.
The firm specializes in navigating complex business environments, and Mr. Gores said he sees great potential for revitalizing PS&E and the Pistons franchise.
"I am very proud to have this opportunity to be part of such a tremendous organization," Mr. Gores said. "I know it’s been a long process and I appreciate the patience and support of the Detroit community. I have been impressed with the Davidson family and the way it has protected and built such a storied franchise. I grew up here, I am glad to be back, and I am very excited about all the possibilities looking forward."
Comerica Bank, a longtime financing partner of Platinum Equity, will provide financing on the transaction. The transaction is expected to close by June 30, pending league approval and normal closing conditions.
Outside of these statements, all parties have agreed to continue to abide by the terms of their confidentiality agreement pending final close of the transaction.
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