|American Capital Invests $16 Million in Leading Provider of Corrosion Protection Products & Services|
Bethesda, MD - March 31, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $16 million in Corrpro Companies Inc. (AMEX: CO), the leading single-source solution provider of corrosion protection related services, systems, equipment and materials. American Capital's investment takes the form of senior subordinated debt with warrants and, through a limited liability company established in conjunction with Wingate Partners, redeemable preferred equity with warrants. American Capital's investment supports Wingate Partners' acquisition of voting control of Corrpro. CapitalSource Finance LLC provided a revolving credit facility and a senior term loan and through its affiliates invested equity. Post closing, American Capital will own approximately 19.2% of Corrpro on a fully diluted basis.
"Corrpro is an internationally recognized market leading company in corrosion protection services, and we are pleased to be investing with Wingate Partners for the first time, further expanding our list of investment partners," said American Capital COO Ira Wagner. "Our investment flexibility, including investing in public companies like Corrpro, combined with our dedicated staff of over 80 investment professionals, continues to attract investment opportunities and helps us to continue to build relationships with an increasing number of private equity funds."
American Capital has invested over $1.1 billion in the last twelve months and over $100 million year to date. For more information about American Capital's portfolio, click here.
"Corrpro's leading market position would be diffcult to duplicate. This gives the company a tremendous competitive advantage and is a result of the most comprehensive line of quality corrosion protection services and products, extensive geographic coverage, a large employee base of accredited and experienced field technicians, extremely well-regarded senior technical personnel and a large recurring revenue base," said American Capital Principal Jeff MacDowell. "Corrosion is an increasing yet preventable cost to the U.S. economy as U.S. and international infrastructures continue to age. Corrpro can expect a busy future driven by corrosion protection as a proven cost effective, long-term economic alternative to expensive and timely infrastructure replacement and increasingly stringent governmental regulations and industry standards."
Founded in 1984, Medina, Ohio headquartered Corrpro Companies is the leading provider of corrosion services and products, offering a comprehensive range of corrosion protection services and product offerings, from initial feasibility testing to solution design, installation, maintenance and monitoring of corrosion protection systems. Corrpro has an extremely broad customer base of over 8,000 customers worldwide in a wide variety of industries, including oil and gas, water systems, electric power, public transit, bridges and other concrete structures such as parking garages, piers and coastal balconies and navy ships. Customers include the U.S. Department of Defense, including the Naval Sea Systems Command and Naval Facilities Engineering Command, pipeline and energy companies throughout the world, and water departments in major metropolitan centers throughout the United States. Corrpro employs nearly 900 in 37 operating facilities in the United States, Canada and Europe and reported 2003 sales of over $100 million.
"American Capital's complete understanding of our investment strategy and ability to provide the necessary subordinated debt and equity financing to bring this transaction to a close made them the ideal investment partner," said Wingate Principal Jim Johnson.
As of February 27, 2004, American Capital shareholders have enjoyed a total return of 287% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $13.82 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2.5 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored 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.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
Wingate Partners, headquartered in Dallas, Texas, is a private investment firm focused on making equity investments in businesses going through significant transition. Wingate portfolio companies include ENSR International, a leading environmental consulting firm focused on the corporate market, AmerCable Inc., the leading manufacturer of electrical power cables used in severe operating environments, and S&N Communications, a leading southeastern U.S. construction and maintenance contractor to local telephone and cable television companies.
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 or national 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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