Bethesda, MD - June 19, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $10.25 million of senior subordinated debt with warrants in Alemite Corporation, a leading manufacturer of high-quality lubrication equipment. The investment partially finances Sentinel Capital Partners' acquisition of Alemite from Invensys plc. AmSouth Capital Corp. is the senior lender. Alemite management is investing in the common equity and will for the first time own a stake in the business.
"Alemite is an example of American Capital's ability to partner with experienced management teams and established private equity investors to spin off a company from its corporate parent," said American Capital COO Ira Wagner. "We are investing in a company with the most recognized brand name in the industry, which has been producing quality products for loyal customers for decades."
American Capital has invested approximately $450 million in middle market companies in the last twelve months.
For more information about American Capital's portfolio click here.
"Alemite's strong managers, together with Sentinel Capital Partners, a highly experienced financial sponsor, are well positioned to develop the business," said American Capital Principal Brian Graff. "By taking advantage of their leading market share, strong brand and international reputation for quality and service, Alemite will continue to expand its product lines and customer base in the years ahead."
Founded in 1919 as a manufacturer of castings, Alemite, now with 350 employees, sells approximately 2,800 lubrication products, including pumps and reels, grease guns, grease fittings and automatic lubrication devices to hundreds of industrial customers as well as consumer automotive customers. Alemite services these customers from its Johnson City, TN plant and Charlotte, NC corporate headquarters.
"American Capital provided the acquisition capital we needed to close the transaction and to establish Alemite on a solid footing as an independent company," said Sentinel Principal Eric Bommer. "With American Capital as our investment partner, together with Alemite's dedicated employees and longstanding customers, we look forward to enhancing Alemite's ability to serve its marketplace with essential, quality products."
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.
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.
Sentinel Capital Partners is a leading private equity firm that specializes in buying and building smaller middle market companies in partnership with management. More information about Sentinel is available at their 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.
