CVF Capital Partners has acquired Gary Platt Manufacturing, a maker of seating used in the gaming industry, in partnership with the company’s management team.
Gary Platt’s products are used by casinos for their slots, table games, poker, bar-top, sportsbook, bingo, and hospitality seating needs. The company’s chairs are in virtually every casino in the US and its customers include International Game Technology, Bally, Aristocrat, WMS Gaming, Multimedia Games, Aruze and Konami.
The Reno, Nevada-based company, led by CEO Joe Esposito, was founded in 1996 on the concept that high quality, comfortable chairs would increase player’s “time on device” and as a result, casino revenues.
According to CVF Capital Partners, the casino and gaming industries have benefited from several recent legal changes and looks to be a growing sector. In May 2018, the U.S. Supreme Court ruled that the Professional and Amateur Sports Protection Act of 1992 was unconstitutional, freeing states to decide for themselves whether to legalize sports betting. As a result, 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 – rising nearly 3.5 percent to $41.7 billion, a new historic high. New commercial casinos 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).
“The changes in the U.S. gaming industry at the federal and state levels provide a great opportunity to invest in a rapidly growing segment where consumers are looking for new and innovative entertainment and hospitality options,” said Stefan Okhuysen, a principal at CVF Capital Partners.
CVF Capital Partners makes majority and minority equity investments of $3 million to $15 million in Western US-based companies that have revenues of $10 million to $100 million and at least $1 million of cash flow. Sectors of interest include business services, transportation and logistics, niche manufacturing, value-added distribution, food, beverage, and agriculture.
“The outlook for the casino and gaming industry is bright as more states introduce new gaming options including new casinos and sport betting venues,” said Mr. Esposito. “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”.
CVF Capital Partners was founded in 2005 and is headquartered near Sacramento in Davis, California, with additional offices in Fresno and San Diego.
© 2019 Private Equity Professional | December 13, 2019
