|American Capital Invests $11 Million in Leading Manufacturer, Distributor of Coated Cable, Cable Assembly Products and Accessories|
Bethesda, MD - August 9, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $11 million in Sanlo Manufacturing Co. Inc., a leading manufacturer and distributor of coated cable, cable assembly products and accessories, in support of its acquisition by Cortec Group. American Capital's investment takes the form of senior and junior subordinated debt with warrants. Merrill Lynch Capital is providing a revolving loan and invested in senior debt. Cortec Group invested in the common equity of Sanlo and is its majority owner. Additionally, Sanlo's senior management has invested in the transaction.
"As M&A activity continues to maintain a robust pace, American Capital is pleased to support a widening circle of equity sponsors," said COO Ira Wagner. "Cortec is our 13th new announced sponsor relationship in the last twelve months."
American Capital has invested over $1.4 billion in the last twelve months and approximately $850 million year to date. For more information about American Capital's portfolio, click here.
"Sanlo is a leader in the low-volume cable products market," said American Capital Managing Director Brian Graff. "The company distinguishes itself among its competitors through its product line breadth, high quality products, small volume, quick-turn service and delivery and the brand recognition that accompanies its reputation as a reliable supplier built up over its 40 years in the industry."
Founded in 1957, Sanlo's operations are housed in its Michigan City, Indiana facility. Sanlo specializes in custom mechanical cable assemblies and in the extrusion of vinyl, nylon, and other thermoplastic coatings over aircraft type cable, wire rope and strand.
"American Capital provided a quick and efficient decision making process and a sure grasp of our investment thesis," said Cortec Partner Richard Fishbein. "They delivered on what they said they would do."
As of July 31, 2004, American Capital shareholders have enjoyed a total return of 257% since the Company's IPO - an annualized return of 20%, 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 $3.3 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.
Cortec Group acquires middle-market manufacturing, service and distribution businesses. Cortec Group Fund III, L.P. has more than $330 million of committed capital to acquire platform companies with enterprise values of $50 million to $300 million and smaller follow-on acquisitions. Cortec portfolio companies include Axia Incorporated, a diversified manufacturing company that includes the leader in automatic finishing tools used by tradesmen to finish drywall, the largest independent producer of dishwasher racks, and the leading worldwide manufacturer of industrial bag closing and handling equipment and systems; Royce Medical, a leading designer, manufacturer, and marketer of orthopedic products; Dr. Leonard's Healthcare Corp., a leading direct mail marketer of home healthcare, comfort, and convenience products; and Fasteners For Retail, a leading provider of point-of-purchase merchandising systems and accessories for retail applications.
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