Bethesda, MD - August 25, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $10,800,000 in Formed Fiber Technologies Inc. (FFT), a company formed to purchase Gates Formed-Fibre Products Inc. from Tomkins PLC (NYSE: TKS). FFT is the leading manufacturer and supplier of thermoformed automotive non-woven products for North American automotive OEMs and Tier I suppliers. FFT's products are used as trunk liners and for interior trim applications on cars, SUVs and light trucks. American Capital's investment takes the form of senior subordinated debt with warrants. PNC Business Credit is providing a revolving credit facility and senior term loan. The buyout group Morgenthaler Partners is the equity sponsor and majority shareholder. FFT's management is investing in the equity, and a portion of the equity base is reserved for an employee stock option program. American Capital will own 5.5% of FFT on a fully diluted basis.
"We are pleased to be working with Morgenthaler again, supporting their acquisition of a non-core business from its corporate parent," said American Capital COO Ira Wagner. "We have invested approximately $135 million to date this quarter, with this being our 6th announced investment of the quarter. We continue to be on track to invest between $750 million and $850 million this year."
American Capital has invested more than $750 million in the past twelve months and approximately $500 million this year.
For more information about American Capital's portfolio click here.
"FFT is the industry innovator and technology leader in thermoformed non-woven automotive trim products and has the leading market share in the North American trunk liner market," said American Capital Principal Ken Jones. "As OEMs and their suppliers turn to non-woven trim components to make cars more functional, attractive and cost effective, FFT's strong management team will capitalize on this conversion from woven materials with its production efficiencies, continuous product improvement, patent-supported innovation and long term industry contracts."
Founded in 1979, Auburn, Maine-based FFT manufactures staple fiber, non-woven roll goods and molded products in its state-of-the-art facilities in Auburn and Sidney, OH. With approximately 600 employees, FFT's customers include Big 3 automakers, as well as major transplants, supplying both directly and indirectly through Tier 1 vendors. The company has seen increasing sales over the past three years.
"American Capital's ability to perform due diligence and get to closing on a tight schedule was critical to this transaction," said Morgenthaler General Partner Fred Festa. "Their team approach and responsiveness to Morgenthaler's requirements as an equity sponsor were precisely what we needed."
For more information about FFT's industry leading non-woven fiber automotive products click here.
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 or declared a total of $12.37 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.
