|American Capital and Its Funds Receive $49 Million in Debt and Equity Proceeds From Sixnet Exit|
BETHESDA, Md., Oct. 13, 2011 /PRNewswire via COMTEX/ -- American Capital Ltd. (Nasdaq: ACAS) announced today that on October 5 its portfolio company Sixnet Holdings LLC ("Sixnet") was acquired by Spectris plc for $72 million. American Capital and its affiliated funds under management received $12 million in equity proceeds, subject to customary post-closing adjustments, of which approximately $7 million went to American Capital. In addition to the equity proceeds, American Capital's $37 million senior debt investments were repaid in full.
American Capital originally invested in the recapitalization of Sixnet in 2005. In 2007, American Capital and its affiliated funds under management invested in Sixnet to support the acquisition of BlueTree Wireless Data Inc., a leading supplier of machine to machine (M2M) cellular data products. In 2009, American Capital and its affiliated funds under management invested in Sixnet to support the acquisition of JBM Electronics Co., a leading designer and manufacturer of cellular routers and related products used in fixed wireless applications.
American Capital's compounded annual rate of return earned over the life of its total investment was 15%, including interest, dividends, fees and expected remaining proceeds held in Sixnet Member Corp.
Celebrating 35 years in operation, Ballston Lake, NY-based Sixnet designs, manufactures and markets rugged Ethernet switches, automation devices, cellular remote terminal units and wireless connectivity products for the industrial and process control markets. Spectris plans to make Sixnet part of its Red Lion Controls business in the Industrial Controls segment.
"We are pleased with the results of this transaction, which showcases our ability to provide flexible capital solutions and support our portfolio companies as they make accretive acquisitions and pursue various organic growth opportunities," said Brian Graff, Senior Managing Director. "With seven offices in the U.S. and Europe, we continue to seek new One-Stop Buyout® opportunities of up to $300 million, as well as senior debt, subordinated debt, unitranche and equity co-invest opportunities from $10 million to $100 million."
"Our investment in Sixnet produced an attractive return for American Capital's shareholders, which is a testament to the success of Sixnet, its leading industrial networking products and strong management team," said Eugene Krichevsky, Principal. "We believe that Sixnet is a great fit with Spectris and its Red Lion Controls business and wish the company continued success in the future."
Since American Capital's August 1997 IPO through the second quarter of 2011, the company has earned an 11% compounded annual return, including interest, dividends, fees and net gains, on 325 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $16 billion of committed capital. These realizations represent 66% of all amounts invested by American Capital since its August 1997 IPO. American Capital earned a 28% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.
For a chart showing American Capital's exited portfolio companies, please go to http://www.americancapital.com/our_portfolio/exited.html.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $52 billion in assets under management and seven offices in the U.S. and Europe. American Capital and European Capital will consider investment opportunities from $10 million to $300 million. For further information, please refer to http://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 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.