HCAP Partners Announces Successful Exit of Portfolio Company Advanced Structural Alloys
Leading contract manufacturer achieves 400% revenue growth since investment; CEO leads management buyout as the company moves into its next phase of growth
San Diego, CA (November 3, 2016) – HCAP Partners (formerly Huntington Capital), a California-based private equity firm and recognized impact investor, today announced that it has sold its investment in Advanced Structural Alloys (ASA) of Oxnard, California. ASA is an industry-leading manufacturer of rotary forged and flow formed products for the automotive, defense, aerospace, and alternative energy markets based in Oxnard, California.
HCAP Partners invested in ASA in 2009 as part of a majority recap led by co-investor Crosse Partners. The company had been significantly impacted by the economic downturn, and the funding enabled a debt restructure and provided new working capital to support operations and the retention of 58 manufacturing jobs which were critical to the Oxnard economy. Since the investment, the company has grown from approximately $5 million in revenues in 2009 to a projected $25 million in revenues in 2016. The company is located in a redevelopment zone in Ventura County and today employs over 140 people from Ventura County and surrounding areas.
ASA was sold to a group of investors in a management buyout led by CEO Rob Melsness. Under Melsness’ leadership, the company has achieved profitable growth resulting in a favorable economic outcome for the company’s employees and shareholders.
“We were pleased to partner on this investment with Zach Fisher and Crosse Partners, who brought a disciplined approach, sector experience, and governance expertise to the business,” said Tim Bubnack, HCAP Partners Managing Partner. “It has also been a true pleasure working with Rob, who is one of the most committed and resourceful CEOs I’ve worked with in our portfolio. Rob and his team are an outstanding example of creative product development, sophisticated manufacturing expertise, and customer service. We are very proud that Rob and the employees of ASA will continue to lead and benefit from the next phase of growth for the company.”
“HCAP has been the ideal financial partner for ASA” said Rob Melsness. “Beginning with a difficult re-structuring in 2008/2009 and through several rounds of growth financing, HCAP has proven to be a trusted and reliable partner. ASA had a remarkable turnaround and it would not have been possible without HCAP Partners and their patient and flexible financing perspective.”
About Advanced Structural Alloys (ASA)
Oxnard, CA based Advanced Structural Alloys is a fully integrated, high-end contract manufacturer of forged and spun aluminum products for the automotive, military vehicle, aerospace, and natural gas container market segments. Learn more at www.advancedstructuralalloys.com.
About HCAP Partners
HCAP Partners (formerly Huntington Capital) was founded in 2000 and is a provider of mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. The firm seeks to invest $2 million to $9 million in established businesses generating between $10 million and $75 million in revenues in the healthcare, software, services, and manufacturing industries.
HCAP has invested in over 50 companies since it was founded and through ongoing, active engagement with portfolio companies, the team at HCAP Partners provides value-added resources to help optimize performance and increase enterprise value. The firm has been recognized as an ImpactAssets 50 fund three years running, and through its Gainful Jobs Approach works to facilitate a positive impact on underserved businesses, their employees, and their communities through active portfolio engagement. Tim Bubnack, Morgan Miller, Frank Mora, Hope Mago, and Nicolas Lopez lead HCAP Partners’ investment team. For more information, please visit www.hcapllc.com or call (858) 259-7654.