Bethesda, MD - August 19, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested an additional $9 million in its portfolio company BC Natural Foods LLC, formerly Petaluma Holdings LLC, to support the acquisition of the Poultry Meat Division of Pennfield Corp. ("Pennfield") and Penn Valley Farms/Hans' Sausage ("Hans'"). American Capital's additional investment takes the form of senior subordinated debt, complementing American Capital's previous senior debt and subordinated debt investments. Booth Creek Management Corp. is the majority owner and equity sponsor of BC Natural Foods LLC. The company's existing senior lender provided an expanded revolving credit facility and senior term loan to support the acquisitions.
"Our additional investment in BC Natural Foods is an example of American Capital's dedication and long-term commitment to the growth of its portfolio companies," said American Capital COO Ira Wagner. "With this transaction, BC Natural Foods is continuing to broaden both its product offerings and geographic reach in line with its strategic plan. We are pleased to be continuing our partnership with Booth Creek Management and BC Natural Foods as they build this leading natural and organic meats company."
American Capital has invested more than $700 million in the past twelve months and approximately $500 million this year. Quarter-to-date, American Capital has invested $125 million.
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"Pennfield and Hans' are tremendous complementary additions to BC Natural Foods' expanding natural meats platform, further strengthening its ability to meet a variety of needs for natural and organic meat products," said American Capital Principal John Thornton. "A major player in the West coast's natural and organic poultry markets, the Pennfield acquisition enables BC Natural Foods to obtain an East coast reach for its natural poultry products. Hans' product line, consisting of a broad variety of branded natural sausages and other related natural food products, greatly expands the depth and breadth of the company's already extensive offerings of sausage products."
American Capital first invested in BC Natural Foods, formerly Petaluma Holdings, in January 2002. Petaluma was the first company to sell chicken with the U.S. Department of Agriculture certification for organic poultry. In November 2002, American Capital supported the company's expansion into other organic meats markets with its acquisition of Coleman Natural Products and B3R Country Meats. Both companies are natural beef processors and Coleman was the first USDA certified natural beef processor.
Headquartered in Chicago, IL, Hans' All Natural Sausage offers a broad line of distinctive natural fresh and cooked sausages and other value added food products to customers nationwide under the brand name "Hans' All Natural". Hans' has over 70 types of fresh, smoked and cooked chicken, lamb, pork, turkey and veal sausages.
The Pennfield Corporation's poultry division, operating out of Fredericksburg, PA, sells its all natural chicken products under the Pennfield Farms and Amish Select brand names. Products include chicken sausages, freezer packaged chicken breasts, roasting chickens and marinated rotisserie ready products.
"With American Capital's support, we are continuing to advance BC Natural Foods' ability to meet the needs of our growing customer base," said Booth Creek Management Corp. Managing Director Jim Skidmoore. "BC Natural Foods, with its two latest additions, is prepared to offer end consumers and the trade healthy products to meet their dietary needs."
As of July 31, 2003, American Capital shareholders have enjoyed a total return of 211% since the Company's IPO -- an annualized return of 21%, 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.
