Bethesda, MD - September 9, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $50 million in senior secured notes as part of the recapitalization of Euro-Pro Corp., a leading designer, marketer and distributor of primarily branded home cleaning products. GMAC Commercial Finance provided a revolving credit facility while Mass Mutual Life Insurance Company and other institutional investors invested in senior subordinated debt. Weston Presidio Capital led the recapitalization and invested in the equity along with Euro-Pro management.
"We're delighted to be working with Weston Presidio for the first time, a sponsor with deep expertise in consumer goods and specialty retailing," said American Capital COO Ira Wagner. "The Euro-Pro transaction is an example of American Capital's ability to support an investment in an innovative and rapidly growing business with leading niche market positions. American Capital remains on track to invest between $750 million and $850 million this year."
American Capital has invested more than $800 million in the past twelve months and approximately $500 million this year. Quarter-to-date, American Capital has invested more than $200 million.
For more information about American Capital's portfolio click here.
"Euro-Pro's strong and deeply committed founders and management team have built a company with leading brand recognition and market position in established and growing markets," said American Capital Principal Frank Do. "Its nimble product development and flexible outsourced Asian manufacturing enables the company to quickly anticipate and satisfy market demands by introducing new products and enhanced features. This, in conjunction with the company's effective multi-channel marketing strategy, remarkable product breadth and flexible, low cost operating structure, are all competitive advantages that form the basis for further growth."
Euro-Pro offers over 50 different appliance products, including products for general cleaning, garment care, and kitchen use. The company markets its products under recognized brand names such as Shark, Euro-Pro, Fantom, Omega and Bravetti, and maintains longstanding relationships with well known retailers.
"American Capital proved to be a flexible, creative firm, sensitive to the unique needs and interests of all parties," said Weston Presidio General Partner Mark Bono. "They were everything we needed in a partner."
"We look forward to forging an even stronger relationship with American Capital as our business continues to grow," added Euro-Pro Co-CEO Stanley Rosenzweig.
For more information about Euro-Pro and American Capital's investment click here.
As of August 31, 2003, American Capital shareholders have enjoyed a total return of 175% since the Company's IPO -- an annualized return of 18%, 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.
