Adaptive Operational Strategies for Varied Ownership Part III: Threading the Needle Private Equity Owned Business- How Elevate Raised the Bar
Private equity (PE) ownership is a high-pressure game: enhance value, optimize operations, and prepare for an exit, typically within 3 to 7 years. For companies under PE control, this often translates to a sharp focus on short-term wins—cost reductions, operational efficiencies, and strategic shifts to polish the financials. Yet, this relentless pace can strain long-term stability if not managed wisely. Elevate Textiles, a U.S.-based textile manufacturer, offers a compelling example of success under PE ownership. With brands like American & Efird, Burlington, Cone Denim, and Gütermann, Elevate has navigated this landscape through strategic acquisitions, operational restructuring, and a pragmatic “what can we do today” approach. For engineers, operations managers, and consultants, their story provides actionable insights into thriving in the PE arena—where incremental progress can be a game-changer.
Elevate Textiles: A Journey Through PE Transformation
Elevate Textiles traces its roots to 2003-2004, when Wilbur Ross acquired Burlington Industries and Cone Mills Corporation, forming International Textile Group (ITG). In 2005, ITG expanded by acquiring a majority stake in Safety Components International, fully merging operations by 2006. The pivotal shift came in 2016 when private equity firm Platinum Equity acquired ITG, later rebranding it as Elevate Textiles in 2019. Under PE ownership, the company bolstered its portfolio by acquiring thread maker American & Efird in 2018 and unifying its brands under a single, cohesive identity.
This transformation wasn’t without tough calls. In 2017, Elevate shuttered the historic White Oak denim mill in Greensboro, North Carolina, after 110 years, as part of a strategic restructuring to streamline operations. Leadership evolved too, with Jeffrey P. Pritchett stepping in as CEO in 2024 to guide the company’s next phase. Through strategic acquisitions, operational overhauls, and brand consolidation, Elevate adapted to market demands, emphasizing high-quality products and sustainable practices to maintain its edge.
The Sticky Side of PE Ownership
PE ownership brings unique challenges that test even the most resilient organizations. Elevate’s experience highlights three common pitfalls:
Limited Investment Horizons: PE firms often prioritize quick returns over long-term capital projects. The 2017 closure of the White Oak mill reflects this reality—a strategic move to conserve resources and focus on immediate profitability. Teams must innovate within tight budgets, targeting high-impact, low-cost solutions.
Short-Term Pressure: With an exit looming, the push for rapid results is unrelenting. Elevate’s swift operational restructuring and brand consolidation under Platinum Equity illustrate this urgency. Balancing today’s deliverables with tomorrow’s potential becomes a daily tightrope walk.
Leadership Flux: New owners often mean new leaders. Elevate’s 2024 CEO transition underscores how turnover can disrupt continuity. Teams must stay nimble, aligning with shifting priorities while maintaining momentum.
These hurdles demand a proactive mindset. Elevate’s ability to weather them shows that success lies in blending short-term execution with sustainable strategies—a delicate but achievable balance.
Winning Strategies in the PE Playbook
Elevate Textiles’ success under PE ownership rests on five key strategies that professionals can emulate:
Strategic Acquisitions: By acquiring American & Efird and integrating brands like Burlington and Cone Denim, Elevate expanded its market reach and diversified its offerings—growth through smart consolidation.
Operational Restructuring: Closing underperforming facilities like White Oak and optimizing manufacturing processes kept Elevate lean and competitive, proving that tough decisions can pave the way for stability.
Brand Consolidation: Unifying diverse brands under the Elevate Textiles banner strengthened its market presence and streamlined its identity—a lesson in clarity amid complexity.
Leadership Transition: Appointing Jeffrey P. Pritchett in 2024 signaled a commitment to experienced guidance, ensuring the company stayed on course through its evolution.
Market Adaptation: Focusing on high-quality textiles and sustainable practices allowed Elevate to meet shifting customer demands, turning market challenges into opportunities.
Central to these strategies is the “what can we do today” mindset—prioritizing actionable, incremental improvements that deliver results now while building a foundation for later.
Practical Tips for PE Professionals
For those on the front lines—engineers, operations managers, and consultants—Elevate’s journey offers a roadmap to excel in a PE-owned environment:
Engineers: Focus on quick wins—process optimizations, equipment upgrades, or waste reduction—that deliver measurable ROI fast. With high leadership turnover, get used to educating up, subject matter experts who are willing and able to are setting themselves up for rapid promotions under the right circumstances. Flexibility is key; priorities can and will shift overnight. Upside: You’ll hone your problem-solving skills and touch nearly every part of the business if you have an eye and a fire to knock out quick wins. Downside: Ambitious long-term projects may stall so manage your time accordingly and sharpen your presentation skills to stand out from the herd who just silently knock out just-do-it projects.
Operations Managers: Master the art of efficiency. Streamline workflows, cut excess, and keep teams aligned on daily goals, much like Elevate’s restructuring efforts. Build resilience into your teams and systems to outlast the PE timeline. Using data to demonstrate improvements takes a little extra effort but it will make all the difference if you’re using it to sell your success proactively. Upside: You’ll thrive under pressure and become extremely adaptable, and if you’re a great leader, you’ll create some awesome comradery with your teams. Downside: The intensity can be grueling. With the high employee turnover that typically comes with the territory, you need to attract and keep the right folks by being going above an beyond the occasional pizza party by making it a truly great place for your best performers so put all those Linked-In “servant leadership” warm and fuzzies into action.
Consultants: Bring fresh perspectives and rapid solutions. Identify inefficiencies and propose fixes that fit the PE clock, as seen in Elevate’s brand consolidation. Stay pragmatic—overambition can backfire. Upside: You’ll work with driven clients and get to claim pretty big wins- especially if you get in the game early before the low-hanging fruit disappears. Downside: Expectations are sky-high and budgets are tight.
The PE Paradox: Pros and Cons
PE ownership is a mixed bag:
Pros: It’s a dynamic, fast-paced environment where sharp execution and teamwork especially shines with alot of opportunities to cut your teeth and move up. Elevate’s growth under Platinum Equity proves the potential for transformation.
Cons: The short-term lens can stifle innovation or lead to contraction and decay, and constant change can exhaust teams. It’s a sprint, not a marathon—stamina and an unshaken demeanor is non-negotiable.
Conclusion: Mastering the Moment
Elevate Textiles demonstrates that private equity ownership, while demanding, is navigable with the right approach. Through strategic acquisitions, operational discipline, and a focus on immediate, impactful actions, they’ve turned PE pressure into progress. For engineers, operations managers, and consultants, the takeaway is clear: embrace adaptability, leverage data, and prioritize today’s wins to shape tomorrow’s success. In the PE world, time is the enemy—unless you weave it into being your strength.
