Bethesda, MD - December 21, 2001 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $25 million to fund The Middleby Corporation's (Nasdaq: MIDD) acquisition of G.S. Blodgett Corporation from Maytag Corporation (NYSE: MYG). Middleby has been a leading designer, manufacturer, marketer and distributor of cooking and warming equipment for over 100 years. Blodgett manufactures commercial cooking products under the Blodgett, Pitco Frialator, MagiKitch'n and Blodgett Combi brands. The acquisition will approximately double Middleby's size and combines two strong brands.
"Our ability to evaluate and close transactions quickly is critical to the efficient growth of middle market companies such as Middleby," said American Capital COO Ira Wagner. "In this transaction, we worked with Middleby in a difficult economic environment to support a strategic acquisition with tremendous synergies."
American Capital has invested approximately $390 million in middle market companies year to date. This compares favorably to its February forecast of $350 million to $415 million in new investments in 2001.
"American Capital is backing a market leader," said Gordon O'Brien, Managing Director and Principal. "Our investment enables Middleby to create a strong combination of complementary products with industry leading brands in all major segments of the commercial cooking equipment industry."
Middleby, based in Elgin, IL and with 10 offices worldwide, distributes its products to over 100 countries. It is well known among leading chain restaurants, providing conveyor ovens as exclusive supplier to Papa John's and Godfathers Pizza. Other major customers include Domino's Pizza, Chuck E. Cheese, Wendy's and Darden Restaurants, operator of Red Lobster, Olive Garden, Bahama Breeze and Smokey Bones restaurants. Blodgett sells to customers throughout North America and in international markets, including McDonald's, Burger King, Kentucky Fried Chicken, Buffets, Cracker Barrel and Uno Restaurants. Middleby's gross margins have steadily improved, from approximately 28% in 1998 to 37% LTM September 2001, despite declining revenues in the food service industry. Sales for the combined companies were approximately $233 million for LTM September 2001.
"American Capital's investment will allow Middleby to increase our market share, further diversify our product lines, broaden our customer base, and capture significant cost savings," said Middleby President and CEO Selim Bassoul.
For more information about Middleby's distinguished history and plans for growth click here.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1 billion. 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. The Company has paid and declared $7.76 per share in dividends since going public in 1997.
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. 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.
