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FOR IMMEDIATE RELEASE:
June 7, 2004 Contact:
Ken Jones, Principal (610) 238-0210
Brian Maney, Director, Corporate Communications (301) 951-6122
AMERICAN CAPITAL INVESTS $17 MILLION IN LEADING
MANUFACTURER OF CORKS FOR THE
GLOBAL WINE & SPIRITS INDUSTRY
Bethesda, MD - June 7, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $17 million in Supreme Corq Inc., a leading manufacturer of thermoplastic elastomer corks for the global wine and spirits industry. American Capital's investment takes the form of a revolving credit facility, a senior term loan and senior subordinated debt with warrants and supports the acquisition of Supreme Corq by Graham Partners.
"We are pleased to be working again with Graham Partners and to provide a one-stop financing solution for their transaction," said American Capital COO Ira Wagner. "We believe Graham's expertise in the plastics and packaging industries will add significant value to Supreme Corq. With each transaction, we demonstrate our ability to work with private equity funds, allowing them to leverage their capital base. We anticipate 2004 to continue to be an active and promising year as middle market M&A activity increases and sponsors look to experienced investment partners like American Capital to provide financing solutions for them."
American Capital has invested over $1.1 billion in the last twelve months and over $300 million year to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.cfm.
"Our investment in Supreme Corq comes at an exciting time as the wine industry begins a conversion from the traditional use of natural cork to synthetic cork," said American Capital Principal Ken Jones. "Already a leading company in its growing market niche, Supreme Corq will continue to leverage its premium products and trusted reputation to expand its business with its diversified international customer base."
 Founded in 1992, Kent, WA-headquartered Supreme Corq is a leading manufacturer of synthetic closures for the global wine and distilled spirits industry, holding approximately 20% of the worldwide synthetic cork market. The company's "corqs" are injection molded closures made from a specialized plastic compound and designed to eliminate the limitations of natural cork while preserving the vintner's traditional bottling process and the consumer's ritual "pop" upon opening. The most important advantage that synthetic cork has over natural cork is that it eliminates the risk of TCA, a naturally occurring mold found in tree bark cork that taints wine and creates an unpleasant taste. Supreme Corq's products are imprinted with customer logos, are available in a wide variety of colors, are sterile and dust free, will not crumble in bottles or chip on production lines, can be opened with a regular corkscrew and are easy to reinsert. With over 60 employees and facilities in Washington State, Belgium, Chile and South Africa, Supreme Corq manufactures corks for over 1,000 wineries in 30 countries, serving customers such as Georges Duboeuf, Canandaigua, Hogue Cellars, Korbel, and William Hill. In addition, Supreme Corq currently holds 23 patents in 15 countries.
"Having worked with American Capital on our 2003 Nailite acquisition, we were familiar with their investment capabilities and were confident in their ability to provide a complete one-stop debt package," said Graham Partners Managing Principal Joe May. "With the support of American Capital and Supreme Corq's management team, the company has the proper resources to grow to its fullest potential."
For more information about Supreme Corq's premium customized synthetic wine and spirits corks, go to http://www.acas.com/news/press_releases/pr/pr.cfm?p_pr=pr20040607a.html.
As of May 31, 2004, American Capital shareholders have enjoyed a total return of 219% since the Company's IPO -- an annualized return of 19%, assuming reinvestment of dividends. American Capital has declared a total of $14.52 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $3 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, Senior Vice President, Business Development, at (800) 248-9340, or visit our website at www.AmericanCapital.com.
Graham Partners is a private investment firm based in suburban Philadelphia managing a private equity fund with over $227 million in committed capital. Graham Partners is an investment affiliate of the privately held Graham Group of York, Pennsylvania, an industrial and investment concern with global interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners seeks to acquire industrial companies with revenues between $25 million and $300 million that are benefiting from product substitution or raw materials conversion trends in the markets they serve.
Graham Partners' portfolio includes Dynojet, a leading manufacturer of aftermarket engine performance products for motorcycles, powersports vehicles, and cars, and a leading manufacturer of performance diagnostic equipment for engines; HB&G Building Products, a leading manufacturer of specialty millwork, consisting primarily of polymer-based exterior and interior columns, exterior porch posts and rails, as well as medallions and interior moldings; and Nailite International, a niche manufacturer of molded polypropylene siding for the remodeling and new construction markets. American Capital invested in Graham's April 2003 acquisition of Nailite.
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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