Bethesda, MD - June 11, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $21.5 million in a new company purchasing all of the outstanding stock of Precitech Inc., a designer and manufacturer of ultra-precision machining systems. The new company is acquiring Precitech from the Permira Funds, and affiliates and certain managers of Taylor Hobson Limited. American Capital will control 88% of the company. The investment takes the form of a senior credit bridge facility, senior term loan, senior subordinated note with warrants and preferred and common equity. Management is making a significant investment in the company by rolling over substantially all of their common equity.
"This is American Capital's fourth one-stop buyout of 2002," said COO Ira Wagner. "We continue to add strong, innovative middle market companies to our portfolio. Precitech builds on American Capital's longstanding expertise in specialty manufacturing companies."
Founded in 1962, Precitech serves a global customer base from a state-of-the-art facility in Keene, NH. Precitech is one of only a handful of companies in the world that are able to commercially manufacture machine tools capable of machining components to nanometric levels of accuracy. Its products are critical in the manufacture of infrared optical components used in certain precision guided missiles, pick-lenses for DVD and CD players, contact lense molds, disk drive components, and micro-lenses and interconnects for fiber optic systems.
"American Capital is backing a strong, committed management team that can make Precitech grow," said American Capital Principal Robert Klein. "Precitech's success is grounded in its proprietary capabilities and its ability to produce diamond machining systems that deliver superior performance across highly specialized product lines. We are confident that given their leading market position and ability to operate well in the recent recession, they will be able to capitalize on very attractive long-term end market growth rates."
American Capital has invested approximately $500 million in middle market companies in the last twelve months.
For more information about American Capital's portfolio click here.
"American Capital is an excellent partner for Precitech as we continue to grow," said Precitech CEO David William Davis. "This investment will benefit the company, our gifted employees and our loyal customers."
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 $8.98 per share in dividends since going public in 1997.
Permira is one of the largest private equity specialists in Europe. The firm's team of over 100, based in Frankfurt, London, Milan and Paris, advise funds with a total committed capital of $6 billion. Since 1985, the Permira Funds have completed over 250 private equity transactions.
Further information can be found at the Company's website.
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.
