Bethesda, MD - October 16, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $18 million in support of the acquisition of Coleman Natural Products and B3R Country Meats by Petaluma Holdings, an existing American Capital portfolio company and the parent company of Petaluma Poultry. American Capital's investment takes the form of senior notes and senior subordinated debt, with Booth Creek Management Corp. providing equity for the deal.
"In this transaction, American Capital is supporting the growth of a portfolio company and continuing to build our partnership with Booth Creek," said American Capital COO Ira Wagner. "Booth Creek is in the process of creating a significant company in the growing natural foods industry."
American Capital has invested more than $500 million in the past twelve months, and approximately $380 million this year.
Click here for more information about American Capital's portfolio.
"Coleman is the premier processor of natural and organic beef and lamb in the country, and is the most recognized brand name in natural meats. The B3R management team is one of the most highly regarded in the industry. The alliance between them creates a strong base from which to better serve the customer," said American Capital Principal John Thornton. "Further, offering Coleman and B3R beef with Petaluma chicken gives customers two key anchor proteins in the natural meat case."
American Capital first invested in Petaluma, based in Sonoma County, Calif., in January of this year. The company was founded in 1969, and has seen sales grow consistent with the growth of the overall natural and organic food markets. Petaluma was the first company to sell chicken with the U.S. Department of Agriculture certification for organic poultry. Coleman Natural Products was formed in Colorado in 1979 to market natural beef. In 1980, Coleman became the first USDA certified natural beef processor. B3R Country Meats was founded in 1986 in Texas as a natural beef processor.
For more information about Petaluma Poultry, Coleman Beef or B3R Country Meats click here.
You Can't Restate a Dividend!
American Capital has declared a $.67 per share dividend to be paid on December 31, 2002 to record holders as of December 12, 2002. This dividend is an 18% increase over the fourth quarter 2001 regular dividend of $0.57 per share. American Capital has paid or declared $10.31 in dividends since its August 1997 IPO at $15.00 per share.
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 private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund 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. 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.
