Elan Growth Partners Invests In HOB Custom Power
Leading Designer and Manufacturer of Power Solutions Partners with Financial Sponsor to Accelerate Growth and Expand Service Offerings
CARLSBAD, Calif., Nov. 20, 2019 /PRNewswire/ -- Elan Growth Partners, LLC ("Elan") announced today that it has completed a control investment in HOB Custom Power ("HOB" or the "Company"—fka House of Batteries), headquartered in Fountain Valley, California. Established in 1965 as an electronic component and battery distributor, HOB has evolved since to become a sophisticated engineering partner to blue-chip original equipment manufacturers (OEMs) by designing and assembling customized power packs for often mission-critical and safety-sensitive applications such as military drones, medical monitoring instruments, and security and industrial sensors.
Mel Weis, former Chief Operating Officer of HOB, was elevated to Chief Executive Officer as part of the transaction.
"Having spent over two decades of my career at HOB, I've witnessed firsthand the growing demand for custom power solutions, driven by the advent of lithium-ion and other complex battery cell chemistries," Mel Weis, CEO of HOB Custom Power commented, adding, "There is a rapidly expanding universe of remotely powered applications that were previously not possible with legacy chemistries. HOB has been the benefactor of these innovations as the Company has focused on developing the capabilities necessary to assemble power systems that require significant engineering, circuitry, firmware and testing in order to deliver reliable energy for complex equipment in remote environments. Elan's investment and operational support will enable us to achieve growth by expanding HOB's capabilities while continuing to closely partner with existing and new OEM customers."
Elan was attracted to the opportunity to partner with HOB due to its talented leadership team, specialized engineering capabilities, reputation for quality, and impressive roster of loyal customers.
"We're very excited about HOB's potential," said Craig Dupper, Managing Partner of Elan. "We seek to partner with owners and leaders of well-established companies that have the ability to accelerate their growth through the addition of the people and resources that we bring to the table, along with capital." He concluded, "We're pleased to be adding HOB to Elan's growing investment portfolio."
Elan was joined by CVF Capital Partners who provided both equity and subordinated debt financing in support of the transaction, and by Comerica Bank who served as senior lender.
Elan Growth Partners
Headquartered in Carlsbad, California, Elan Growth Partners invests in lower middle market companies with $1 - $6 million in EBITDA, operating in the manufacturing, niche software, business services and food sectors. Elan seeks to partner with leaders and business owners that seek to accelerate growth and unlock embedded enterprise value. For more information, visit https://www.elangrowth.com/.
CVF Capital Partners
CVF Capital Partners finances lower middle market late-stage growth, recapitalization, and buy out investments. For more information, visit http://cvfcapitalpartners.com/.
Comerica Bank
Comerica Bank is The Business Bank segment of Comerica Incorporated. For more information, visit https://www.comerica.com/.
SOURCE Elan Growth Partners, LLC
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