|American Capital Invests $15 Million in Leading Manufacturer of Heat Induction Foil Seals|
Bethesda, MD - May 24, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $15 million in Selig Sealing Products Inc., a leading North American manufacturer of heat induction foil seals for plastic containers. American Capital's investment takes the form of a senior term loan and supports Behrman Capital's acquisition of Selig. Madison Capital is providing a revolving credit facility and senior term loans. Selig management is rolling over their equity investment.
"This is our third time working with Behrman Capital and we are pleased that they continue to turn to us for financing in support of their buyouts," said American Capital COO Ira Wagner. "Selig's line of sealing products, which ensure the security and freshness of many common household items and pharmaceuticals, are sold into non-cyclical end markets and generate strong free cash flows. These attributes make Selig a great investment opportunity."
American Capital has invested over $2.4 billion in the last twelve months, $760 million year to date and over $350 million quarter to date. For more information about American Capital's portfolio, click here.
"Selig's manufacturing efficiencies, full product line and top performing technology have made it the leader in the North American induction sealing market. In addition, Selig's product superiority and outstanding customer service have enabled it to develop stable, long-standing customer relationships," said American Capital Managing Director David Ehrenfest Steinglass. "We believe that under the leadership of President and CEO Steve Cassidy, a packaging industry veteran, Selig will capitalize on international expansion opportunities as well as organic domestic market growth driven by a growing demand for tamper-evident packaging and a conversion to plastic containers."
Founded in 1972, Forrest, IL-headquartered Selig Sealing Products was the first company to develop a foil seal to prevent the leakage of plastic bottles and also, through partnering with 3M, introduced the first U.S. Food and Drug Administration approved tamper-evident closure foil liner. The Company's seals are found on bottles of over-the-counter pain relievers and peanut butter jars, as well as ketchup bottles, sports drinks, nutraceuticals and automotive and other industrial products.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.2 billion. American Capital is an investor in and sponsor of 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 March 31, 2005, American Capital shareholders have enjoyed a total return of 311% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. As of March 31, 2005, American Capital has outperformed 99% of all public companies based on annual returns in each of the past 1, 3, 5 and 7 year time periods. American Capital has paid a total of $717 million in dividends and paid or declared $17.51 dividends per share since its August 1997 IPO at $15 per share.
Companies interested in learning more about American Capital's flexible financing should contact Mark 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.
ABOUT BEHRMAN CAPITAL
Based in New York City and San Francisco, Behrman Capital was founded in 1992 by Grant G. Behrman and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth companies and provides expansion capital to emerging growth companies. The company's investments are focused primarily in four industries: information technology, contract manufacturing, outsourcing and healthcare. The firm currently has a combined capital base of $1.8 billion. Portfolio companies include: Athena Diagnostics, a provider of comprehensive neurological testing services; Hunter Defense Technologies, a manufacturer of heaters and nuclear, biological and chemical filtration systems and filters; and ILC Industries Inc., a provider of defense electronics and engineered softgoods.
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
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