Bethesda, MD. -- American Capital Strategies (Nasdaq:ACAS) announced today that it has invested $5.5 million in senior and subordinated debt with warrants issued by Patriot Medical Technologies, Inc. Patriot provides asset management and testing and repair services for diagnostic and other medical equipment.
Patriot used the proceeds for the acquisition of Novare Services, Inc. Novare, headquartered in Cincinnati, Ohio, is a leading provider of capital asset management services for diagnostic, therapeutic and imaging equipment to hospitals and health care facilities throughout the United States. Novare was founded in 1983 to provide clinical and biomedical equipment maintenance services to the hospitals comprising the Sisters of Charity Health Care Systems (CHI). Novare's business more than doubled as it expanded its markets to include hospitals outside the CHI system.
Richard Naylor founded Patriot in 1997 and serves as President and CEO. "Our goal is to become the nation's leading independent provider of high quality equipment service to hospitals and other health care providers. The funds provided by American Capital for the acquisition of a business as significant as Novare will provide immediate synergies and opportunities for Patriot to aggressively bid for new contracts in new markets. Novare's name and reputation will boost Patriot's position in the marketplace and the Novare employees will significantly compliment our team," commented Ric Naylor.
American Capital Principal John Freal commented, "We are always pleased to support strong management teams, which includes those of both Patriot and Novare. We look forward to internal and external growth opportunities for this business with demand expected to increase significantly as outsourcing trends in hospitals continue. Patriot is now the nation's fifth largest independent service provider and is executing a business plan that it believes will lead to being number one."
Malon Wilkus, President and CEO of American Capital, added, "This is a great way to end the quarter. Yesterday we not only completed the Patriot financing but also finalized our $100 million credit facility from First Union bringing our total capital resources to $265 million. Monday we sold Four-S Baking Company, reaping an excellent return for our shareholders."
Click here to learn more about American Capital's Patriot Medical transaction.
American Capital is a buyout and specialty finance company with capital resources exceeding $265 million. American Capital invests $3 to $20 million of senior debt, subordinated debt and equity to middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings. Companies interested in learning more about American Capital and its unique and flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at 781-862-4447 or visit its website at www.American-Capital.com or its shareholder site at www.ACAS1.com.
American Capital has offices in Bethesda, Maryland, New York City, San Francisco, Chicago, Boston, Pittsburgh and Dallas.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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.
