Investment Group Takes 28% Stake in Variflex

A Los Angeles-based investment partnership has acquired approximately 28% of Moorpark-based Variflex Inc.’s common stock.

Remy Capital Partners IV purchased the stock from Raymond H. Losi, a Variflex cofounder, and other members of the Losi family for $9.2 million, or $5.50 per share. The Losi family continues to hold 32% of the company’s shares.

Variflex also announced that Mark S. Siegel and Randall L. Bishop of Remy were appointed to the company’s board of directors. Siegel will succeed Raymond H. Losi as board chairman. Losi will continue to serve as a director.

Variflex is a supplier of in-line skates, skateboards, skating protective equipment and bicycle and recreational safety helmets.

Raymond “Jay” H. Losi II, who was not among the selling shareholders and continues to own 22% of the company’s stock, was elected chief executive officer and retains the titles of president and chief operating officer. As part of the transaction, Gerald I. Boyce, Barbara Losi and Marvin G. Murphy resigned as directors.

“We are extremely pleased that Remy has recognized the inherent value in Variflex,” Jay Losi said. “We believe that Remy’s knowledge of the consumer products market and their financial expertise, coupled with Variflex’s existing strengths, will enable us to move forward and take advantage of the growth opportunities in this industry.”

Among Variflex’s strengths, Siegel said, is that the company has substantial cash and no debt on its balance sheet.