Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that it has invested $19.75 million in support of the acquisition of Atlantech International Inc. The investment takes the form of $18.75 million in senior subordinated debt with warrants and $1.00 million in redeemable preferred stock. Atlantech is a holding company that owns The Tensar Corporation, a manufacturing operation based in Morrow, Georgia, and related manufacturing, sales and marketing entities. KRG Capital Partners L.L.C., a Denver, Colorado based private investment group, is the transaction sponsor.
Tensar is the largest manufacturer of polymeric earthwork geogrid reinforcement products & systems in the world. Geogrids permit cheaper, faster and more durable construction of transportation & environmental infrastructure projects including roadways, parking lots, retaining walls and coastal protection systems. Tensar packages these products with valued-added engineering services to provide complete solutions for its clients. Tensar's customers include municipal, county and state departments of transportation and environmental regulatory agencies, as well as customers from the commercial and industrial sectors.
"American Capital is investing in proven industry leaders," said President and COO Adam Blumenthal. "Where conventional debt and equity markets are pulling back, American Capital is able to step in and assist middle-market companies that produce, enhance and maintain essential components of our nation's transportation infrastructure."
"American Capital is backing a strong, well respected management team at Atlantech as well as a tremendous sponsor in KRG," said American Capital Principal Darin Winn. "Tensar will continue to benefit from increased outlays for infrastructure capital investment and increased acceptance of geogrids as cost-effective soil stabilization products."
The increased government outlays for highways and bridges is a direct result of the Transportation Equity Act for the 21st Century (TEA-21), the six-year, $200 billion federal highway bill that runs through 2003. It is estimated that TEA-21 spending accounted for more than 20% of total public construction output in 1999.
"American Capital's investment allows us to continue our market penetration in the soil stabilization industry while also focusing on new commercial applications for our existing products," said Atlantech Chief Executive Officer Philip Egan.
American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.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.
