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Central Valley Fund Completes Follow-On Expansion Investment in Source Logistics

Posted on: Wednesday, 1 July 2009, 09:26 CDT

LOS ANGELES, July 1 /PRNewswire/ -- The Central Valley Fund ("CVF"), a private investment fund focused on middle market Central Valley companies, and existing shareholders today announced a follow-on expansion capital investment of $750,000 into Source Holding Delaware, LLC ("Source" or the "Company"). CVF made its first investment of $2.75M into Source in the first quarter of 2008.

Since CVF funded its initial investment, the Company has continued to build closer relationships with Mexican and Latin American food and beverage manufacturers who seek to introduce their dominant local brands into the complicated U.S. market. Source, with its comprehensive suite of logistics services, allows these companies to effectively integrate into the multi-dimensional U.S. retail distribution network.

With Los Angeles and Laredo, TX serving as critical points for the growing Hispanic food and beverage trade in the U.S., the Company's warehousing facilities in these areas have seen significant volume growth, creating a need for additional resources. The purpose of the follow-on equity investment is to assist the Company with expanding its infrastructure to accommodate new growth opportunities in both locations.

Commenting on the fund's experience with Source to date, Jose Blanco, a partner with CVF, stated, "We are very pleased with the rapid growth and traction Source Logistics continues to make with 'blue-chip' food and beverage operators demanding 3PL services in warehousing, freight, and value-added services (repackaging, labeling, etc.). CVF believes non-U.S. consumer products companies looking to be competitive in the U.S. market will continue to seek efficient 3PL solutions."

Marcelo Sada, Source's President and Chief Executive Officer, remarked, "It has been a privilege to partner with CVF. Their understanding of the business has become instrumental in assisting the management team with its strategic, operational, and financial planning. By allowing the Company to invest in its infrastructure, this additional infusion of capital enables Source to execute on its growth opportunities and continue to be a leader in the Hispanic logistics business."

About the Central Valley Fund: The Central Valley Fund was established by the principals of Gael Partners, LLC to finance later stage growth through mezzanine and preferred equity investments. The fund has offices in Davis, CA and Fresno, CA. It is focused on making investments in California's Central Valley and throughout the state. For more information, please visit www.centralvalleyfund.com.

About Source Holding Delaware, LLC: Source was founded in 1999 to provide third-party logistics solutions for the storage and freight handling needs of Mexican and Latin American consumer products manufacturers. The Los Angeles-based company utilizes its network of warehouses and a range of value-added services to permit its customers to grow revenues throughout the U.S. For more information, please visit www.sourcelogistics.net.

Media Contacts: Jose Blanco Partner, Central Valley Fund Ph. 530-757-7004 x227 Marcello Sada CEO, Source Holding Delaware, LLC Ph. 323-887-3884

SOURCE Central Valley Fund

Source: PR Newswire

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