Bethesda, MD - July 26, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $13 million in 3SI Security Systems to fund the purchase by 3SI of ICI Security Systems, the leading provider of security solutions utilizing tear-gas and dye-based staining to protect currency from bank robbers. ICI Security Systems is a subsidiary of Imperial Chemical Industries plc. American Capital's investment takes the form of a senior subordinated note with warrants. Lincolnshire Management Inc. is the equity sponsor. GE Capital is providing $20 million in senior revolving term loan facilities. ICI Security Systems management is investing in the common equity.
"After a record breaking first half of the year, American Capital is off to a strong start in the third quarter and facing a strong backlog of transactions," said Chairman, President and CEO Malon Wilkus. "Our ability to raise capital in a variety of ways places us in an excellent position to assist middle market companies in need of investment capital. By accessing the public equity markets, executing on-balance sheet securitizations and, in addition, utilizing our credit facility, we bring affordable investment capital to companies who must contend with a shrinking pool of lenders."
American Capital has invested over $500 million in middle market companies in the last twelve months.
For more information about American Capital's portfolio click here.
"3SI is purchasing a company with a dominant share in its niche market, and its strong and experienced management, now freed from the constraints of a corporate parent with an unrelated business, is highly motivated to grow the company with assistance from Lincolnshire," said American Capital Principal and Managing Director Jeri J. Harman. "The company has the highest rate of cash recovery success compared to competing products and numbers among its customers premier financial institutions around the globe. It is well positioned to build on its record of success and on the increasing number of bank branches."
3SI's global headquarters are located in Exton, PA, with production facilities in Byron, GA. Its European headquarters are located in Zaventem, Belgium. The business employs 135 people and has recorded revenue and record earnings growth for each of the past 13 consecutive years. Its customers include The Royal Bank of Scotland, Bank of America, Washington Mutual, Suntrust Bank, Canadian Imperial Bank, Deutsche Post, Credit Lyonnais and Banco Popolare di Verona.
"American Capital's investment was critical in closing this transaction and establishing 3SI as an independent, stand alone company," said Linconshire Senior Managing Director Peter Van Raalte. "We are pleased to be working with American Capital as an investment partner and with 3SI, enabling them to better serve their global banking clientele and to protect depositors' money."
Click here for more information about 3SI's market leading, proprietary technologies.
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 $9.64 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.
