Bethesda, MD - February 4, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $22.75 million to support the acquisition of The Hygenic Corporation, a leading manufacturer and marketer of branded and private label healthcare and fitness products. American Capital's investment takes the form of senior secured subordinated notes and preferred and common equity. Baird Capital Partners is the majority owner. Antares Capital Corporation and Madison Capital Funding LLC provided a revolving credit facility and invested in senior term debt and preferred and common equity. Hygenic management made a significant investment in the equity. American Capital will own a significant minority position in Hygenic on a fully-diluted basis.
"Our partnership with Baird Capital Partners is our 14th new sponsor relationship in the last twelve months, and we are delighted to be a major partner with them in the acquisition of a leading global brand in healthcare and fitness," said American Capital COO Ira Wagner.
American Capital has invested more than $1 billion in the last twelve months.
For more information about American Capital's portfolio click here.
"Hygenic's Thera-Band® brand is the preeminent brand in physical therapy products. The company maintains a strong position in the product categories in the markets in which it competes: the physical therapy, healthcare, dental and industrial market segments," said American Capital Managing Director Tom Gregory. "Hygenic's strong financial performance and sophisticated new product development and introduction capabilities form the basis for exciting opportunities for worldwide growth."
Founded in 1925, Akron, OH-based Hygenic's broad manufacturing capabilities in Akron and Malaysia allow it to manufacture an extensive range of products. Its approximately 500 employees produce and distribute resistive exercise bands and tubing, exercise balls, exercise mats and aquatic products under the Thera-Band®, Dyna-Band®, AquafinsTM and Parabath® brands as well as healthcare and specialty products such as disposable tourniquet straps, medical and laboratory tubing and dental dams for use in oral surgery and other endodontic procedures. Pictured here is the Thera-Band® exercise ball.
"We are excited about partnering with American Capital," said Baird Capital Partners Managing Director Brian Anderson. "They understood the challenges that arose as the transaction progressed, and provided the certainty, confidence and creative structuring necessary to get to closing, providing the subordinated debt and the equity co-investment capital necessary for Hygenic to build on its leading global position."
For more information about Hygenic's brand strength and products click here.
As of January 31, 2004, American Capital shareholders have enjoyed a total return of 273% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid 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 $2.5 billion. American Capital is an investor in and sponsor of 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.
With more than 40 professionals in the United States and Europe, Robert W. Baird & Co.'s global private equity business has raised and managed approximately $1 billion in capital. It includes Baird Capital Partners, Baird Venture Partners and Granville Baird Capital Partners. Baird Capital Partners provides late-stage growth capital or change-of-control capital to U.S.-based, middle-market companies in the areas of Business Services, Industrial Products and Technology, Communications, Consumer and Life Sciences/Health Care. The group's investments are supported by Baird's full range of financial advice, operating expertise and industry research, providing a unique full-service approach to the entire private equity investment process.
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.
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This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.
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