Bethesda, MD - September 24, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $15 million in Nancy's Specialty Foods, a leading producer of frozen gourmet quiche entrées, appetizers and desserts. American Capital's investment takes the form of senior subordinated debt and supports the recapitalization of Nancy's by Kohlberg & Co. GE Capital provided a revolving credit facility and senior term loan. Management, together with Kohlberg & Co., will retain their majority ownership position in the Company.
"Our investment in Nancy's Specialty Foods is our ninth new portfolio investment of the quarter and 20th in 2003. American Capital remains on track to invest between $750 million and $850 million this year," said American Capital COO Ira Wagner. "In addition, this is the 16th time in the last twelve months that American Capital has invested with a new private equity partner. We look forward to working with Kohlberg & Co. for the first time as well as Nancy's management team."
American Capital has invested more than $800 million in the past twelve months and more than $550 million this year. Quarter-to-date, American Capital has invested more than $200 million.
For more information about American Capital's portfolio click here.
"American Capital is supporting the growth of a dominant market leader in all of its niches. Nancy's strong management, long term sole source supply relationships with top retailers, excellent reputation for high quality products and over 25 years experience in the industry form a solid basis for continued growth," said American Capital Principal John Thornton. "In addition to its leading position in the frozen quiche market, Nancy's has successfully leveraged its reputation to become a diversified producer of a variety of complimentary frozen appetizers and entr�es. Nancy's ability to be a low-cost producer stems, in part, from its custom-built, state-of-the-art manufacturing facility that incorporates an impressive array of automated processes, allowing the company to increase efficiencies, linespeeds and product quality."
Founded in 1977, Newark, CA-headquartered Nancy's employs over 300 and manufactures a broad line of premium quality gourmet products, including convenient frozen and refrigerated Quiche Entrées and Appetizers, frozen appetizers such as Deli Spirals, Mushroom Turnovers and Seafood Crab Cakes, and frozen desserts such as Pecan Tartlets. Customers include leading club stores, conventional grocers and food service providers. Pictured at left is Nancy's Quiche Lorraine, a conveniently delicious gourmet treat for anytime of the day.
Click here for more information about Nancy's line of gourmet frozen foods.
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.
Kohlberg & Company L.L.C. is a leading U.S. private equity firm specializing in middle-market investing. Since its inception in 1987, the firm has organized four private equity funds, through which it has raised $1.4 billion of committed capital. The firm has completed more than 30 buyout investments and over 60 add-on acquisitions, representing a value in excess of $4.0 billion.
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.
