Bethesda, MD - November 8, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $36 million in the recapitalization of ASC Industries Incorporated ("ASC"). ASC is a manufacturer of water pumps for automotive and light truck vehicles for the replacement market. American Capital's investment takes the form of a senior term loan, senior and junior subordinated debt and preferred equity. GMAC Business Credit is providing a revolving credit facility and a senior term loan. Existing ASC management is retaining a majority equity investment.
"American Capital's investment in ASC supports a quality manufacturer of superior products and management with the capability to continue its growth plan," said Chief Operating Officer Ira Wagner. "It is our 19th new portfolio investment in an excellent year."
American Capital has invested more than $550 million in the last twelve months, and over $400 million this year.
Click here for more information about American Capital's portfolio.
"ASC's significant competitive advantages set it apart," said American Capital Principal Robert Klein. "ASC's extensive product offerings and order fullfillment capacity, flexibilty in meeting customer needs, and ability to develop new model water pumps to adapt to a changing market, among other things, have resulted in its ability to outperform the competition."
"The company's strong management has demonstrated its ability to capitalize on ASC's core competency as a high quality supplier of goods with superior supply chain management," added American Capital Principal Brian Graff. "The company's decade-long manufacturing presence in China has provided ASC with an unrivalled cost advantage for sourcing its component parts, combined with a 'just-in-time' fulfillment capability at its assembly operations in North Canton, Ohio."
Founded in 1976, ASC's world headquarters and main assembly and distribution facility is located in a new 130,000 square foot, state-of-the-art facility in North Canton, Ohio. ASC also operates foundry, machining and sourcing operations in China, through ASC Tianjin and ASC Liancheng, a majority-owned joint venture with a local partner. Now with over 800 employees, ASC has seen strong sales growth over the past two years. Customers include most of the leading retailers in the automotive aftermarket and a select number of distributors focused on independent mechanics.
"American Capital's ability to act as a long term partner and work with us to grow ASC make them the ideal investment partner," said ASC founder and CEO Ted Swaldo. "We are now in a significantly enhanced position to build on our success, benefiting our many customers and outstanding employees."
For more information about ASC's market-beating innovation 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.
