Portfolio Company Press Release
|American Capital Invests $25 Million in Leading Designer and Manufacturer of Concrete Saws|
Bethesda, MD - August 24, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $25 million in Soff-Cut International Inc., a leading designer and manufacturer of specialized Ultra Early Entry™ concrete saws for the commercial and residential construction markets. American Capital's investment takes the form of a senior term loan and senior and junior subordinated debt and supports Westar Capital LLC's debt recapitalization of its portfolio company Soff-Cut. American Capital is also providing a revolving credit facility.
"American Capital is pleased to add Soff-Cut, a leader in the construction equipment market, to its growing portfolio of companies," said American Capital COO Ira Wagner. "We are also pleased to be investing alongside Westar Capital for the first time, our 15th new sponsor relationship in the last twelve months. We continue to expand our relationships with private equity sponsors, providing flexible financing solutions for their middle market companies."
American Capital has invested over $1.5 billion in the last twelve months and over $900 million year to date. For more information about American Capital's portfolio, click here.
"Soff-Cut is a leader in its niche, holding a dominant market position in the early entry commercial concrete saw market," said American Capital Managing Director Frank Do. "Soff-Cut's strong, diverse customer base and end user loyalty, extensive, patented product offering, and attractive cost structure are competitive advantages that position it to capitalize on favorable industry dynamics as well as significant growth opportunities in both domestic and international markets. We are confident in the excellent management team that has operated the company profitably even during the commercial construction market's previous down cycle."
Founded in 1988, Corona, CA headquartered Soff-Cut is a designer and manufacturer of Ultra Early Entry™ concrete saws. Soff-Cut's patented Ultra Early Entry™ design and technology enables contractors to cut control joints in concrete 1-2 hours after finishing and before final set. This procedure relieves the pressure and tension in the concrete as it hydrates and begins to set and thereby minimizes the incidence of random cracking during the curing process, providing a significant cost and technological advantage. The company's main product categories are saws, diamond blades and accessories. Soff-Cut holds 26 U.S. patents covering its extensive product offering and 21 international patents related to its Ultra Early Entry™ technology Soff-Cut distributes its products through construction equipment dealers both in the U.S. and internationally.
"American Capital was precisely the investment partner we sought to complete this investment. Not only did they have a strong understanding of Soff-Cut's business model, competitive position and long-term strategy, but they also understood and respected our investment thesis and strategy," said Westar General Partner Michel Glouchevitch. "With a strong market position, patented products, a proven management team and now additional financial support, Soff-Cut is well-positioned to grow and expand its already leading business through new product introductions, continuous product improvements, entering new markets and expanding distribution."
As of July 31, 2004, American Capital shareholders have enjoyed a total return of 257% since the Company's IPO - an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid a total of $524 million in dividends and paid or declared $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3.3 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 and Senior Vice President, Business Development, at (800) 248-9340, or visit our website.
Westar Capital LLC is a private investment firm established in 1987 that provides capital to acquire established growth companies in partnership with management. In special situations, Westar also provides equity financing for corporate expansion, restructurings or acquisitions and will purchase significant equity positions from large shareholders seeking liquidity. Westar's portfolio of investments include Lifecare Solutions Inc., a provider of integrated home healthcare services, including infusion therapy, respiratory therapy, and durable medical equipment; Igloo, the leading ice chest manufacturer worldwide; and Amerigon, a developer, manufacturer and marketer of proprietary high technology products for the automotive and consumer product industries.
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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