|American Capital Completes One Stop Buyout™ of Barton Cotton|
Bethesda, MD - May 2, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has completed the One Stop Buyout™ of Barton Cotton Inc. Barton Cotton is the leading provider of integrated direct marketing fundraising services to non-profit organizations (NPOs). American Capital's investment takes the form of senior term loans, subordinated debt and equity. American Capital is also providing a revolving credit facility. Barton Cotton management is investing in equity alongside American Capital. Post close, American Capital owns approximately 83% of the Company, on a fully diluted basis.
"American Capital's ability to provide the entire financing package in this transaction, including senior debt, subordinated debt and equity, has facilitated the One Stop Buyout™ that will enable Barton Cotton to realize its full growth potential," said American Capital Managing Director Robert Klein. "We are pleased to be backing a leading provider of fully integrated services for non-profit organizations, which has recorded strong revenue growth."
American Capital has invested approximately $3.7 billion in the last twelve months, approximately $1 billion year to date and $263 million quarter to date. These amounts do not include American Capital's unfunded equity commitment to its affiliate European Capital. For more information about American Capital's portfolio, click here.
"Barton Cotton is a leader in a large and growing market. Its expertise and sole focus in providing full-service direct marketing solutions to NPOs offers compelling value to its clients by generating a predictable and recurring source of income for them," said American Capital Principal Dale Stohr. "Barton Cotton has a long history of executing successful direct marketing programs in the NPO market. The Company offers integrated services, including strategic program development, creative design, data analysis, production and fulfillment. In addition, the Company manages one of the most robust sets of donor data in the NPO industry and uses proprietary analytics to help NPOs understand donation patterns."
"Barton Cotton is poised for further robust growth as a proliferating universe of NPOs, faced with ever intensifying competition for donors, seeks to professionalize and outsource direct mail fundraising activities," said American Capital Vice President Brian Marshall. "American Capital is excited to work with the Company's outstanding management team and dedicate the resources necessary to take advantage of the multiple growth opportunities available to the Company."
Founded in 1928 as a publisher and printer of billing inserts, stationery and other materials, Barton Cotton has grown into the leading fully integrated fundraising service provider to NPOs such as religious organizations, affinity groups and membership and social services organizations. The Company develops and implements direct mail programs designed to generate funding support for NPOs primarily by sending upfront premiums such as cards, calendars, note pads and other items to solicit donations. Barton Cotton operates three divisions, including Fundraising, which provides customized direct marketing fundraising services; Royalty, which sells branded Christmas cards exclusively through direct mail and online channels to members, supporters or donors of NPOs and affinity groups; and Religious Products and Services, which sells religious stationery products through catalogue and online channels to Catholic parishes in the U.S. and Canada. Barton Cotton's customers include Veterans of Foreign Wars, the National Geographic Society, the American Humane Association and the American Lung Association. In 2005, Barton Cotton recorded net sales of approximately $110 million. The Company, based in Baltimore, MD, employs over 200 people.
"We are extremely excited to have American Capital as our new partner," said newly appointed Barton Cotton President Terry Bateman. "American Capital shares our growth vision for the business and has the resources to help us make that vision a reality."
ABOUT AMERICAN CAPITAL
As of April 30, 2006, American Capital shareholders have enjoyed atotal return of 405% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $1 billion in dividends and paid $19.91 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