|American Capital Invests $34 Million in Evans Analytical Group|
Bethesda, MD - September 7, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $34 million in Evans Analytical Group LLC ("EAG"). EAG is the world's largest independent provider of microanalytical surface analysis and materials characterization services. American Capital's investment takes the form of a senior term loan, senior subordinated debt and redeemable preferred equity. American Capital is also providing a revolving credit facility.
EAG was formed by American Capital, the management of EAG and Auriga Partners Inc., in order to purchase the assets of the Evans Analytical laboratories from High Voltage Engineering Corporation, a company operating in bankruptcy. The transaction was authorized by the High Voltage bankruptcy court under Section 363 of the Bankruptcy Code. The transaction also involved the purchase by EAG of the interests not owned by High Voltage in three EAG affiliated entities, Evans East, Evans Texas and Cascade Scientfic Labs Inc. Auriga Partners and EAG management are investing in the equity of EAG. Following the transaction, American Capital owns approximately 58% of EAG, on a fully diluted basis.
"We are pleased to announce our buyout of EAG, American Capital's 13th buyout in 2005. Our extensive buyout expertise, financing capabilities and experience in growing middle market companies make us a preferred partner for management teams seeking support for their growth initiatives. Our Special Situations Group utilized its particular expertise in the section 363 auction process," said American Capital Chief Operating Officer Ira Wagner. "We were particularly attracted to EAG because of its extremely focused technical services and its dedicated and highly skilled employees, which create high barriers to entry."
American Capital has invested over $2.8 billion in the last twelve months, over $1.9 billion year to date and $636 million quarter to date. For more information about American Capital's portfolio, click here.
"EAG is the clear market leader in the microanalytical surface analysis and materials characterization services industry, offering the broadest range of testing capabilities and retaining the strongest group of highly skilled scientists in the industry," said Myung Yi, American Capital Principal, Special Situations Group. "We're looking forward to working with EAG's management team. Their industry experience, intimate knowledge of the company and deep focus on growth should add tremendously to the future success of EAG."
EAG's microanalytical surface analysis and materials characterization services identify the overall atomic and physical structure of materials, including chemical composition, level and type of trace impurities and light absorption/reflection properties. EAG's services are a critical component in research and development, manufacturing and sales support functions and are used specifically in developing new processes or materials, transferring those processes to production, developing and qualifying new production tools and solving yield problems in manufacturing. EAG has a diversified customer base of more than 1,000 customers in the semiconductor, semiconductor equipment, electronics, medical and biotech industries, among others. Headquartered in Sunnyvale, California, EAG also has facilities in Minnesota, Massachusetts, New Jersey, Texas and Taiwan.
"American Capital's strong financial support and in-depth understanding of our company, our challenges and our opportunities confirm that we are working with the right investment partner for managing EAG's growth," said EAG Chief Executive Officer Tom Pfeil. "By consolidating all of the Evans laboratories into a single company, EAG strengthens its market leadership position and will now be better able to serve the needs of its customers. Furthermore, we will extend our sales and marketing into emerging customer segments and deepen the Company's penetration into its existing domestic and international markets."
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.4 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, and provides capital directly to private and small public companies. American Capital provides up to $250 million of senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
As of August 31, 2005, American Capital shareholders have enjoyed a total return of 411% since the Company's IPO - an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $787 million in dividends and paid or declared $18.29 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.
ABOUT AURIGA PARTNERS INC.
Auriga Partners is a private capital firm founded in 1992 that provides financial advisory services and acquires and builds mid-size companies in a variety of industries.
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