|American Capital Invests $40 Million in Panelized Building Component Manufacturer|
Bethesda, MD - September 17, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $40 million in Erickson Construction Co. Inc., a cost-effective manufacturer of panelized building components for the homebuilding industry. American Capital's investment takes the form of a Term B loan and supports the acquisition of Erickson by a private equity firm.
"We are pleased to be investing in Erickson Construction, a strong, well established company," said American Capital COO Ira Wagner. "Erickson is our 31st announced new portfolio company investment in 2004."
American Capital has invested over $1.5 billion in the last twelve months, over $1.0 billion year to date and over $350 million quarter to date. For more information about American Capital's portfolio, click here.
"American Capital is backing a strong residential manufacturer of panelized building components that cost-effectively produces superior quality frames in three strategically located facilities, requiring less on-site construction time than competitors," said American Capital Principal John Thornton. "With strong demand for new homes in its rapidly growing markets, driven by favorable trends in demographics, home ownership rates and housing affordability, Erickson can look forward to many growth opportunities."
Founded in 1975, Chandler, AZ-headquartered Erickson produces panelized building components for the frame construction of homes to large residential homebuilders in the Phoenix, AZ, Sacramento, CA and Reno, NV markets.
As of August 31, 2004, American Capital shareholders have enjoyed a total return of 281% since the Company's IPO - an annualized return of 21%, 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 $3.6 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.
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