CVF Invests With Management in Gary Platt Manufacturing

CVF Capital Partners announced today the acquisition, alongside management, of Gary Platt Manufacturing (GP) (https://www.garyplatt.com), based in Reno, NV. Gary Platt Manufacturing has been in the gaming seating business since 1996. At the inception, the founders of the company had over 40 years of experience in the gaming seating industry. Gary Platt produces seating exclusively for casinos for their slots, table games, poker, bar-top, sportsbook, bingo, and hospitality seating.

The company was founded on the concept that a high quality, comfortable chair would increase player’s “time on device” and as a result, casino revenues. By specializing in casino seating, Gary Platt has become the recognized leader in performance seating by casino customers and casino management. Gary Platt supplies IGT, Bally, Aristocrat, WMS, Multimedia, Aruze and Konami, amongst others, with seating for their participation games. Gary Platt chairs are in virtually every casino in the US.

The casino and gaming industries have benefited from several recent legal changes and promises to be a growing sector. In May 2018, the U.S. Supreme Court issued a landmark ruling finding the Professional and Amateur Sports Protection Act of 1992 (PASPA) unconstitutional, freeing states to decide for themselves whether to legalize sports betting. To date, residents in fourteen states are now able to place a legal sports wager, with more states expected to join them in 2020.

With expanding legalization has come new business opportunities through the expansion of sports betting. As a result, the commercial casino gaming sector logged its fourth consecutive year of gaming revenue growth in 2018—surging nearly 3.5 percent to $41.7 billion, a new historic high. New commercial casino properties opened in Colorado, Massachusetts, New Jersey and New York, and voters in Arkansas have approved a constitutional amendment, making it the 25th state to legalize commercial casino gaming (and the 41st state overall with legal casino gaming, including tribal casino operations).

According to Joe Esposito, President & CEO of Gary Platt Manufacturing, who will be investing in the new transaction with other team members, “the outlook for the casino and gaming industry is bright as more states introduce new gaming options including new casinos and sport betting venues.” He stated further that, “we look forward to the opportunity to partner with CVF in the years to go come. Their long experience in manufacturing and teaming up with management teams successfully will further help propel Gary Platt forward”.

The investment in Gary Platt is a clear example of the evolution nationally of changing consumer tastes and preferences. According to Stefan Okhuysen, Principal at CVF Capital Partners, “The changes in the U.S. gaming industry at the federal and state levels provides a great opportunity to invest in a rapidly growing segment where consumers are looking for new and innovative entertainment and hospitality options.”

CVF Supports Investment in HOB Custom Power

CVF Teams Up with Elan Growth Partners and Management to Drive Continued Growth in Innovative Custom Power Assemblies

The Central Valley Fund (CVF) announces a $9 million investment consisting of both mezzanine debt and equity, to support Elan Growth Partners’ (Elan) investment in HOB Custom Power (HOB or Company), based in Fountain Valley, CA, www.CustomPower.com.

Since 1990, HOB Custom Power (originally known as “House of Batteries”) has been designing and assembling custom power solutions for medical, military, security, and a large range of industrial and commercial applications. The company provides power solutions ranging from single-cell to multi-cell assemblies often with onboard electronic circuitry and integrated battery management system (BMS) firmware, utilizing a variety of advanced chemistries including lithium ion, lithium iron phosphate, nickel metal hydride, and others. HOB’s combined expertise in engineering and manufacturing has enabled the company to provide custom-designed, cost-competitive solutions that solve the myriad of challenges faced by military, medical, industrial and security related OEMs.

Given recent advances in lithium-ion technology, customer demand has grown exponentially during the last 20 years as electronic devices become more mobile, require more power density, and are subject to increasingly harsh environments.

A related growth market for mobile power solutions is in heavy industrial applications such as lift trucks, sweepers and scrubbers, airport ground support applications, and automatic guided vehicles (AGVs). These niche applications have been historically served by lead-acid batteries and internal combustion engines, but the economics have rapidly shifted in favor of more advanced battery chemistries.

“In 2019 alone, over 40 private equity investments have been made into lithium-ion based technologies,” according to Stefan Okhuysen, Principal at CVF Capital Partners. “In addition, we also see quite a bit of funding going to energy storage systems by many oil and gas companies, as well as utilities, who are actively investing in battery storage, smart grid, and efficiency companies as the public and private sectors look for safer and more sustainable energy solutions.”

Commenting on Elan’s latest investment in HOB, Craig Dupper, Managing Partner at Elan added “OEMs are looking for more complex and higher-performing battery technologies to efficiently operate increasingly power-hungry technology and equipment. While advances in lithium-ion technology have accelerated this trend, new and even more complex chemistries are emerging. Given the specialized engineering required to manage these custom-designed power systems, HOB and its team of engineers are well-positioned to meet this growing need.”

About CVF Capital Partners

CVF Capital Partners was established in 2005 to finance later-stage growth, recaps, and buyout opportunities across the lower middle market. CVF invests both mezzanine debt and preferred equity from the $385 million in committed capital it has raised across three funds. The fund has offices throughout California – Davis, Fresno and San Diego. This geographical footprint allows the firm to attend to small businesses seeking capital throughout California and the broader Western United States. For more information, please visit https://cvfcapitalpartners.com/

About Elan Growth Partners

Headquartered in Carlsbad, California, Elan Growth Partners invests in lower middle market companies operating in the precision manufacturing, niche software, business services and food sectors that seek to accelerate growth and unlock embedded enterprise value. As an independent sponsor, the Firm invests $5-25 million of equity per transaction, helping businesses evolve to the next level. For more information about Elan, please visit www.elangrowth.com.

Contacts:

At Elan Growth Partners:

Craig Dupper, Founder & Managing Partner: (760) 309-9436 ext. 101

Max Young, Principal: (760) 309-9436 ext. 102

At CVF Capital Partners:

José Blanco, Managing Partner: (530) 757-7004

Stefan Okhuysen, Principal: (619) 400-4881

SOURCE CVF Capital Partners

CVF to be Panelist at Private Equity & Venture Capital Boards Event

CVF Managing Partner, Jose Blanco, to be a panelist at Private Equity & Venture Capital Boardrooms event by Board of Directors Center of Excellence

On September 25th, 2019, the Board of Directors Center of Excellence is hosting an event to educate entrepreneurs, investors, and board members on board room best practices that can be implemented to develop a more efficient and responsive Board of Directors. The Board of Directors Center of Excellence is a non-profit organization providing business leaders the forum and expertise to meet the ever-changing challenges of corporate governance. Their main focuses include connecting, educating, and enabling group members to:

(A) Prepare for and be hired as qualified professional board members, and

(B) Learn industry best practices, access best in class content and develop relevant relationships to serve their respective boards.

The event will include keynote speakers, moderators, and panelists who will speak about their experiences and learning lessons from holding board positions at multiple companies throughout their careers.

Please click here to sign up.

When

Wednesday, September 25, 2019, from 7:30 AM to 11:30 AM PDT

Where

Big Canyon Country Club

1 Big Canyon Dr

Newport Beach, CA 92660