|American Capital Invests $13 Million in Tymphany Corporation|
Bethesda, MD – October 3, 2006 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today it has invested $13 million in Tymphany Corporation, the industry’s leading provider of innovative audio transducers, and the developer of the Tymphany Linear Array Transducer (LAT), the first significant breakthrough in subwoofer technology since the inception of the subwoofer. American Capital’s investment takes the form of convertible preferred equity. The investment is being used to provide working capital for the expansion of the Company’s China operations and to support further product development and penetration of new markets. Greg Smitherman, American Capital Managing Director, will be joining Tymphany’s Board of Directors. Vantage Point Venture Partners, the Company’s main investor, also participated in the financing round.
American Capital has invested approximately $4.7 billion in the last twelve months, approximately $3.5 billion year to date and approximately $1 billion in the third quarter. These amounts do not include American Capital’s unfunded equity commitment to its affiliate European Capital.
“One of the things that makes Tymphany such an attractive investment is that it is truly a hybrid of an early- to mid-stage start-up and an older, established company,” said American Capital Managing Director Virginia M. Turezyn. “Through its astute merger with Danish Sound Technology a year and a half ago, Tymphany went from no history in the audio industry to a respected history dating back over 80 years. The merger brought top acoustical engineers, manufacturing facilities in both Denmark and China, and an amazing installed base of customers that includes many of the world’s leading speaker brands. The depth of its audio engineering talent and manufacturing capabilities, combined with a well-defined strategy for entering new markets, make Tymphany a compelling new addition to our portfolio.”
“This investment allows Tymphany to complete its transfer of manufacturing operations to China, a move that is producing a winning combination of unparalleled innovation and engineering with low cost production,” said American Capital Managing Director and new Tymphany board member Greg Smitherman. “The first applications of the Tymphany LAT have arrived on the market and have already proven the value of their compact, vibration-free design. With smaller versions of the LAT in development, it will be exciting to see and hear the impact of this subwoofer on other products, such as flat panel TVs and MP3 docking stations.”
Tymphany Corporation is the leading provider of innovative, high quality audio transducers and acoustical engineering customization services for manufacturers of both lifestyle consumer electronic products and audiophile-quality, high-end solutions. The Company offers a wide range of products and form factors unmatched in the industry, and sells these products under the renowned ScanSpeak and Peerless brands, and the Tymphany LAT brand. Tymphany’s products are manufactured in an ISO-certified facility in Denmark, and in the Company’s state-of-the-art, ISO-certified facility in PanYu, China. With over 80 years of audio transducer design, development and customization expertise, Tymphany’s brands provide the optimum audio solution for any application or end-product.
“American Capital’s appreciation for our business, its experience in the technology sector and its flexible capital make it the perfect investment partner for Tymphany,” said Tymphany’s Chairman, CEO and President, Mike Hackworth. “Its support enables us to pursue the vast potential of our innovative new technologies more aggressively, and to invest in the expansion of our world-class manufacturing facility in China. As we expand our reach into the lifestyle consumer electronics markets, it’s very important that we support our customers with high volume, high quality production capabilities to match their own volume and quality standards.”
ABOUT AMERICAN CAPITAL TECHNOLOGY
The American Capital Technology Group invests in early, middle and late stage technology companies as well as mature companies driven in significant part by a specific technology. With the flexibility to invest senior debt, subordinated debt and equity from $5 million in early stage companies to $400 million in more established companies, the American Capital Technology Group can leverage its capital base and domain expertise to build category-leading companies.
American Capital has approximately $1 billion in technology investments in its existing portfolio. These companies generally are mature, high performing, cash flowing companies with excellent growth rates. They operate across many industry sectors and are driven by a broad range of technologies. The Technology Group extends American Capital's existing technology investment business by investing in earlier stage technology companies.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of $8.9 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital invests from $5 million to $400 million per company.
As of September 30, 2006, American Capital shareholders have enjoyed a total return of 500% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of over $1.2 billion in dividends and paid $21.56 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 www.AmericanCapital.com.
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.
SOURCE: American Capital Ltd.www.americancapital.com