Bethesda, MD - December 24, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $62.5 million in the buyout of nSpired® Natural Foods Inc., a leading natural and organic food products company. American Capital's investment takes the form of a revolving credit facility, senior term loans, senior and junior subordinated debt and preferred and common equity. Post closing, American Capital will own 78% of nSpired on a fully diluted basis.
"Our investment in nSpired, marks American Capital's 6th announced buyout of 2003 and our 26th announced new portfolio company of the year," said American Capital COO Ira Wagner. "nSpired is one of the leading companies in the rapidly growing organic and natural foods sector, and we expect nSpired to participate and benefit from that growth through the continuing introduction of new products and further penetration of the market with its existing products."
American Capital has invested over $900 million this year and over $250 million quarter to date.
For more information about American Capital's portfolio click here.
"nSpired is a great opportunity for American Capital to support a leader in natural and organic foods, one of the fastest growing segments in the retail industry," said American Capital Principal Ian Larkin. "We are backing a strong and deep management team comprised of professionals with significant industry experience who have increased the company's growth rate in recent years. With leading brands and market share, we believe nSpired is well-positioned to meet the rapidly growing market demands driven by increasing consumer diet and health concerns."
Founded in 1998, nSpired Natural Foods is manufacturer, packager and seller of natural and organic foods, including nut butters, salty snacks, candy and confections, culinary oils and specialty snacks. Headquartered in San Leandro, CA, nSpired has four additional distribution, manufacturing and warehouse facilities in Oregon and Washington, and has doubled sales in the past two years. With top selling brands such as MaranathaTM, Tropical Source®, Cloud Nine®, Sunspire® and Skinny® , nSpired has recorded significant revenue growth in recent years. nSpired products can be found in prominent retailers such Trader Joe's, Whole Foods, Costco and Safeway. Pictured at left is nSpired's popular MaranathaTM organic peanut butter, a delicious, healthy choice for the health conscious consumer.
"American Capital is the perfect partner to help nSpired continue to grow and attract new customers," said nSpired CEO Gil Pritchard. "We have numerous growth opportunities in a promising industry and the entire management team very much appreciates the strong support we have from American Capital. We look forward to serving our customers' special dietary needs and increasing nSpired's market share."
For more information about nSpired's product line of deliciously healthy snacks click here.
As of November 30, 2003, American Capital shareholders have enjoyed a total return of 231% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has declared a total of $13.12 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $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.
