Bethesda, MD - March 31, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has invested $50 million in Vigo Remittance Corporation ("Vigo"), a leading worldwide electronic funds transfer service firm. American Capital's investment takes the form of senior debt and senior subordinated debt with warrants, and supports the acquisition and future growth of Vigo by Great Hill Partners alongside a seasoned management team.
"American Capital has invested approximately $175 million to date this year," said American Capital COO, Ira Wagner. "Our one-stop financing capability provides us with a competitive advantage and we are pleased to be working with an experienced equity sponsor such as Great Hill Partners for the first time. In addition, our in-house diligence resources continue to be a vital asset in assessing investment opportunities. With this investment in Vigo, we are adding a major niche player in a rapidly growing service industry to our portfolio."
American Capital has invested more than $600 million in the last twelve months.
For more information about American Capital's portfolio click here.
"American Capital is supporting a rapidly expanding, strong company with substantial market share in the growing worldwide money transfer industry," said American Capital Principal Robert Klein. "We are confident in the impressive management team, which has a diverse background in the US and Latin American markets, as well as valuable experience in the finance, banking and money transfer industries. With favorable conditions in the industry, expected continued growth in US immigration from Latin America and the company's competitive pricing, high service business model, Vigo is well positioned to increase its market share in key Latin American markets."
Founded in 1985, Sunrise, FL-based Vigo Remittance Corporation is among the world's largest money transmitting firms. The company operates in 33 countries around the world, with a primary focus on Latin America and the Caribbean. The company has a strong record of profitability, with annual sales growth of over 30% since 1999.
"We are pleased to be partnering with American Capital for the first time," said John Hayes, Great Hill Partners Managing Director. "We look forward to working with American Capital and Vigo's management team to strengthen Vigo's presence in the rapidly growing money transfer industry. Great Hill partnered with an industry savvy management team to implement a seamless ownership transition."
For more information on Vigo's reliable, low price money transferring services click here.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1.7 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.
American Capital paid $2.55 in regular dividends in 2002, a 15% increase over 2001, and including the bonus dividend declared in 2002, paid or declared a total of $2.57 in dividends in 2002. American Capital has paid or declared a total of $11.00 per share in dividends since its August 1997 IPO at $15 per share.
Great Hill Partners is a private equity firm with over $1 billion in capital resources. With a focus on service providers in the communications, information technology, media and business services industries, Great Hill Partners invests $10 to $45 million across all stages of company growth, from start-ups to buyouts.
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.
