Z Capital Partners is a private equity firm based in Chicago that specializes in revitalizing businesses, and today, they’ve taken hold – or at least part of it – of the struggling Affinity Gaming LLC. The acquisition of Affinity Gaming lets Z Capital control 24.97% of the company, thus making it the company’s largest shareholder.
James J. Zenni, presiden and CEO of Z Capital, said that the investment was two years in the making and allows Z Capital to stake ground in an industry where it can take advantage of its operational and restructuring expertise to work with Affinity Gaming’s management to improve its enterprise value and achieve significant returns for its all of its investors. “We have great respect for Affinity Gaming and its strong commitment to guests, employees, and partners,” Zenni said.
“This investment has been a two year process and we see significant potential for long-term growth at Affinity Gaming and look forward to supporting management’s efforts to lead the company into its next phase.”
It’s important to note that Affinity Gaming is multi-jurisdictional casino operator that operates casinos in a number of US states, including Nevada, Missouri, Colorado, and Iowa. The acquisition allows Z Capital to bring some much-needed life back to Affinity Gaming, who Lord knows, probably needs all the help it can get despite modest revenues earned in the first quarter of the year.
“Z Capital has been a long-time supporter of our management, employees and business strategy, and we are excited to see them step up into a more prominent role in our ownership,” said David D. Ross, CEO of Affinity Gaming.
“We believe that this new level of support from Z Capital will provide us with greater flexibility to execute our strategic plan of growing cash flow through elevating our guest experience, enhancing our value proposition and improving the overall performance of our properties.”
Z Capital’s entry into the picture is good news for Affinity Gaming, especially if the latter can live up to its reputation as a company that is considered one of the best investment firms that can turn “distressed middle market companies” around and back to respectability.