|American Capital Invests $35 Million in Leading Designer, Developer, Producer and Marketer of Portable Power Products|
Bethesda, MD - October 6, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $35 million in the senior term B debt of Vector Products Inc. The proceeds of the investment will be used to expand Vector's research and development activities as well as for a shareholder distribution. Vector is a leading designer, developer, producer and marketer of portable power products for consumers in the automotive, marine, home and consumer electronics markets. Wachovia Bank N.A. is providing a revolving line of credit. Vector management is maintaining its equity investment in the Company.
"American Capital's ability to lend directly to middle market companies with outstanding financial performance and strong market positions is critical to their growth," said American Capital Chief Operating Officer Ira Wagner. "We are pleased to be supporting Vector, a company with an excellent record of profitability."
American Capital has invested nearly $3 billion in the last twelve months, over $2.2 billion year to date and approximately $920 million in the third quarter of 2005. For more information about American Capital's portfolio, click here.
"Vector has prospered with a culture of innovation, exemplified by its nearly 60 patents in the U.S., 33 registered trademarks and over 100 patents pending," said American Capital Principal Steve Martinez. "The Company has grown by expanding its relationships with customers and introducing new, innovative products and enhancements to existing ones. Vector's in-house, state-of-the-art technical expertise, ability to customize and develop superior product features, better quality, and most reliable order fulfillment have allowed it to increase its market share and become the undisputed leader in an otherwise fragmented market."
"Vector has successfully positioned itself across multiple end markets and retail channels," said American Capital Vice President Eric Heith. "In addition to the Company's relentless innovation, driving the Company's growth are its large end markets with steady expansion; secure and increasing relationships with major big box retailers such as Wal-Mart, Sam's Club, Home Depot, Lowe's, Target, Best Buy and Pep Boys; and licensing agreements with household names Black & Decker and Rubbermaid. The strength of Vector's relationships with its top customers is illustrated by the Company's selection as Vendor of the Year at Sam's Club."
Based in Ft. Lauderdale, FL and with over 100 employees, Vector's targeted end user is any consumer with a home, car or boat or any worker requiring portable power. Products include battery chargers, power inverters, jump starters, rechargeable spotlights, flashlights, and lamps, thermoelectric coolers, polishers, and all hazard weather alert TV/radios. In addition to products marketed under the Rubbermaid and Black & Decker brands, the Company sells products under the Vector and Power On Board brands as well as the house label brands of its largest customers, including Husky at Home Depot. Recently, the Company introduced portable products supporting the Sony PSP and Apple's iPod music system. Pictured here is the patented Smart Battery Charger with battery diagnostics and engine start.
"American Capital's due diligence made it clear that they worked hard to understand our business and provide the right financing for Vector to continue its proud tradition of innovation and growth," said Vector President and CEO Michael Krieger.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $6 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
As of September 30, 2005, American Capital shareholders have enjoyed a total return of 407% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid $18.29 dividends per share since its August 1997 IPO at $15 per share.
Companies interested in learning more about American Capital's flexible financing should contactMark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit our website.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
This announcement is neither an offer to sell nor a solicitation to buy securities.
SOURCE: American Capital Ltd.www.americancapital.com
|Quotes delayed at least 15 minutes. Market data provided by Interactive Data.|
Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions.