Bethesda, MD - October 1, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $49 million in the buyout of ICN Worldwide Dosimetry Services, one of the world's largest providers of radiation dosimetry services, from ICN Pharmaceuticals Inc. (NYSE: ICN). The business will now operate under the new name, Global Dosimetry Solutions Inc. American Capital's investment takes the form of senior debt, senior and junior subordinated debt, and preferred and common equity. GMAC Commercial Finance invested in senior debt and is providing a revolving credit facility. For the first time, Global Dosimetry management will have a significant equity stake in the business.
"American Capital is very excited about the buyout of this non-core business of ICN. This investment brings us to approximately $257 million of announced investments in the third quarter, making it a record quarter," said COO Ira Wagner. "This is the third American Capital buyout of 2003 and our 22nd announced new investment of the year. We continue to be 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 more than $600 million this year. In the third quarter, American Capital invested more than $250 million.
For more information about American Capital's portfolio click here.
"American Capital is investing in one of the leading actors in a small, profitable industry," said Principal Robert Klein. "Its large, diverse customer base, a significant portion of it obligated by government regulation, generates strong cash flows. In addition, the company is capitalizing on outsourcing trends within its targeted industries. As a stand-alone company, it can apply the marketing focus necessary for significant future growth."
"Our capability to provide a one stop source of finance made it possible for us to differentiate American Capital from the other buyers in a very competitive process to acquire an outstanding company," said American Capital Principal Brian Graff.
Global Dosimetry is a supplier of analytical monitoring services to detect occupational exposure to radiation. The company, formed in 1973 as part of a parent company acquisition, enjoys an extremely diverse global customer base of over 25,000 clients, with large customers including nuclear power plants, hospitals, industrial clients, universities and research labs, in addition to myriad medical, dental and veterinary accounts.
"American Capital is precisely the right investor to support our evolution from non-core division to stand-alone company," said Global Dosimetry President Sandi Nemecek. "Their flexibility, sensitivity to day to day business needs and ability to see how we fit in to the big picture makes them an ideal business partner."
Click here for more information about Global Dosimetry Solutions' opportunities for growth.
As of September 30, 2003, American Capital shareholders have enjoyed a total return of 183% since the Company's IPO -- an annualized return of 19%, 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 $2 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.
