TORONTO, January 18, 2007 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a $7 million investment in Starburst Coin Machines Inc. ("Starburst").
Led by the VenGrowth Traditional Industries Group, investments were made by the VenGrowth Traditional Industries Fund Inc., VenGrowth III Investment Fund Inc. and VenGrowth Mezzanine I Limited Partnership. The VenGrowth investment includes taking an equity position in Starburst.
VenGrowth's investment assisted Starburst in the acquisition of Playdium Corporation ("Playdium"), furthering Starburst's strategy to consolidate the amusement machine industry. With the acquisition of Playdium, Starburst expects combined revenues from all operations to exceed $60 million.
Starburst's core business is the operation and distribution of amusement and vending machines throughout North America. The company's machines include games and kiddie rides and can be found in various locations, including mass merchandisers, entertainment centres, bars and restaurants.
Along with acquiring Playdium's well-known 40,000 square foot family entertainment centre located in Mississauga, Ontario, the company's most recent acquisition will provide Starburst with a significant presence in the North American movie theatre industry as a result of Playdium's long-term relationships with major theatre chains in Canada and the United States.
"We have been especially impressed with Starburst's management and primary shareholders, Len Keywood and Gary Walters. Their knowledge of the business and industry is unsurpassed," said John Neate, Director, VenGrowth. "Over the past 20 years, Starburst has made several key acquisitions and integrated them all successfully, proving its ability to profitably grow and adapt the company to the market's changing demands. Playdium, its biggest acquisition to date, further solidifies Starburst as an industry leader."
"The benefit of our decision to partner with VenGrowth is already clearly evident," said Len Keywood, President, Starburst. "Together we found, structured and closed the Playdium deal. Starburst's operational expertise and VenGrowth's financial resources are a dynamic combination for the continued consolidation of the amusement game industry in North America."
About VenGrowth Traditional Industries Group
The VenGrowth Traditional Industries Group specializes in financing solutions for mid-market Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. Investments are made on behalf of stakeholders in participating VenGrowth Funds. The Team primarily invests using debt instruments with the objective of generating interest and dividend income to the Funds. In addition, the Funds will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. This group of VenGrowth professionals is led by Graham McBride, a highly-regarded mezzanine financing expert with over 19 years of experience.
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in over 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com
For further information:
Angus Fisher
Manager, Media & Communications
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
