|American Capital Invests $284 Million in Buyout of Ranpak Corporation|
Bethesda, MD - December 14, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $284 million in the buyout of Ranpak Corporation from First Atlantic Capital Ltd. Ranpak is a leading manufacturer and marketer of paper-based "in-the-box" protective packaging systems and materials in North America, Europe and the Pacific Rim. American Capital's investment takes the form of senior and junior subordinated debt and redeemable preferred and common equity. A syndicate led by GE Antares Capital, a unit of GE Commercial Finance, is investing in a senior term B loan and also providing a revolving credit facility. Rankpak's management team is also investing in the equity. Post close, American Capital owns approximately 85% of Ranpak, on a fully diluted basis.
"Ranpak is a very successful company, with a steady stream of recurring revenues and attractive cash flows, making it a great addition to our growing portfolio of approximately 150 middle market companies," said American Capital Chief Operating Officer Ira Wagner. "We are backing a strong management team, which has done an excellent job driving results."
American Capital has invested approximately $3.7 billion in the last twelve months, approximately $3.2 billion year to date and $1 billion 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.
"Ranpak's management team has done an outstanding job of creating a leading supplier of paper-based packaging materials," said American Capital Principal Todd Wilson. "Ranpak's installed base of over 31,000 machines worldwide and end-user relationships create a well-entrenched, diversified customer base and generate stable demand. In addition, the Company's high-performance product attributes and competitive overall costs to end-users will allow Ranpak to benefit from significant market opportunities in the growing 'in-the-box' packaging industry, driven by overall growth in e-commerce and key end markets, such as electronics, technology, furniture and the automotive aftermarket. Furthermore, as oil prices continue to increase, Ranpak's paper-based packing materials offer attractive cost advantages over petroleum based packing materials, such as polystyrene peanuts, polyethylene air bags and bubble wrap."
"Ranpak is a proven innovator in the packaging industry with a history of successful product innovations," said American Capital Managing Director Robert Klein. "Ranpak offers its customers a compelling value proposition with its top packaging materials, which are high quality, cost-effective and cost-competitive."
Founded in 1972, Ranpak manufactures a patented line of machines that convert paper into specialized sizes and shapes of desired specifications to cushion and protect products during shipment. Ranpak currently assembles two different types of machines: PadPak, cushioning machines used to create paper padding that protects a package's contents from shock and vibration, and FillPak, void-fill machines designed to fold paper specifically to fill the empty space in a package, in addition to bracing the packaged item in place. Ranpak's customers are typically OEMs and distributors operating in a wide array of industries, including industrial, automotive, medical, consumer products and technology. In addition to its headquarters in Concord Township, Ohio, Ranpak operates two manufacturing facilities located in Nevada and The Netherlands. In 2004, Ranpak recorded approximately $100 million in net sales.
"American Capital is the right partner for Ranpak and we're looking forward to our collaboration," said Ranpak's President and Chief Executive Officer David Gabrielsen. "We believe our new partnership with American Capital strengthens our ability to increase our market share through product innovations and expansion of our worldwide customer base."
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to 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 and recapitalizations.
As of November 30, 2005, American Capital shareholders have enjoyed a total return of 431% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid or declared $19.08 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.
SOURCE: American Capital Ltd.
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 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.