Bethesda, MD - July 25, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $42 million in the recapitalization of Escort Inc., a leading niche designer, manufacturer and distributor of automotive consumer electronic products. American Capital's investment takes the form of a last out senior term loan, junior and senior subordinated debt with warrants and redeemable preferred equity. GE Capital Funding, a unit of GE Commercial Finance, provided a senior term loan and Huntington National Bank provided a revolving credit facility. Escort's management and employees are also investing in equity.
"American Capital's recapitalization of Escort reflects our longstanding expertise in supporting the growth of niche manufacturers in a wide array of industries," said American Capital COO Ira Wagner. "In this transaction, we demonstrated American Capital's ability to locate an excellent middle market company, conduct intensive and focused due diligence and to structure and close an appropriate transaction."
American Capital has invested more than $700 million in middle market companies in the last twelve months.
For more information about American Capital's portfolio click here.
"American Capital is backing an industry and technology leader with strong, widely recognizable brand names," said American Capital Principal Kenneth E. Jones. "A well-established company, Escort has captured significant market share, dominating the higher end market segment, by capitalizing on its sustainable competitive advantages: superior performance, unquestionable reliability, complementary sales channels, strong patents and excellent forward looking engineering design and manufacturing capabilities. We are confident in the leadership abilities of President and CEO Greg Blair, a 2002 winner of the National Ernst & Young Entrepreneur of the Year Award. Mr. Blair has proven his ability to successfully direct a company through his expertise in sales channel management and focus on new product development and continuous technological advancement."
Founded in 1977, West Chester, OH-headquartered Escort Inc. is the leading designer, manufacturer and distributor of highway radar and laser detectors. An industry innovator in radar detection technology, Escort manufactures over 20 radar and laser related products and sells its high tech products domestically and internationally under the Escort, Passport, Solo, Bel, Express and Vector brand names. The company has over 200 employees operating in its two facilities in West Chester, OH and Mississauga, Ontario. Consumers purchase Escort products at leading retailers such as Best Buy, Circuit City, Sharper Image, Tweeter, Etc., Car Toys and Ultimate Electronics.
"American Capital and our investment partners are supporting Escort as we move forward, expanding our business and providing our valued customers with the most advanced products," said Escort President and CEO Greg Blair. "We are pleased to have their support and expertise to help us build upon our leadership and further solidify our position in the radar and laser detection market."
For more information about Escort's industry leading high-tech radar detection products, go to http://www.americancapital.com/news/press_releases/pr/pr.cfm?p_pr=pr20030725a.html and to http://www.escortradar.com.
As of June 30, 2003, American Capital shareholders have enjoyed a total return of 177% since the Company's IPO -- an annualized return of 19%, assuming reinvestment of dividends. American Capital has paid a total of $11.68 per share in dividends since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $1.8 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 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.
