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Bethesda, MD - July 27, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $43 million in the buyout of Future Food LP, a producer and marketer of refrigerated dips, spreads and seafood salads, from Transition Capital Partners and Private Equity Partners. American Capital's investment takes the form of a senior term loan, senior and junior subordinated debt with warrants and common partnership interests. Texas Capital Bank, a subsidiary of Texas Capital Bancshares (Nasdaq: TCBI), is providing a revolving credit facility and a senior term loan. Future Food management is also investing in the common stock. American Capital owns approximately 99% of Future Food on a fully diluted basis.
"Future Food's leading brands, Santa Barbara Bay and Salads of the Sea, position them very well in the premium refrigerated dips and spreads market. Their history of steady growth and market expansion opportunities make it an attractive investment for American Capital," said American Capital COO Ira Wagner. "Future Food joins our growing diversified portfolio of over 100 middle market companies." American Capital has invested over $1.4 billion in the last twelve months and over $750 million year to date.
For more information about American Capital's portfolio click here. "American Capital is supporting the growth of the largest company in a growing niche market," said American Capital Principal Jeff MacDowell. "We are confident in the leadership of the strong management team that is focused on its vision of continued growth and has demonstrated its ability to grow the business both organically and through acquisitions. In addition, Future Food's excellent customer base, with a national footprint and complete line of branded foods, positions it to capitalize on positive industry trends as consumers increasingly rely on ready-to-serve foods."  Founded in 1984, Carrolton, Texas based Future Food manufactures a complete line of refrigerated dips, spreads, and seafood salads, with a primary focus on seafood dips and salads containing "surimi," imitation crab meat made from Pollack fish. The company offers nearly 50 recipes and over 170 SKUs, including items such as Cajun Krab Dip™, Jalapeño Krab Dip™, Spinach Dip with Water Chestnuts™, and Raspberry Chipotle Dip™. Its three product lines, Santa Barbara Bay, Salads of the Sea and private label brands, are distributed throughout 45 states through major U.S. grocery retailers, club stores, and mass merchandisers. Customers include Costco, Wal-Mart, Super Target, Winn-Dixie, Albertsons, Harris Teeter, Safeway, Kroger, and Ahold. In addition to its headquarters, the company has a manufacturing facility in California and outsources a portion of production to two co-packers in Texas. Future Food has seen sales grow at an annual compounded rate of over 10% since 2000. Pictured above is Future Food's Cajun Krab Dip™, a ready-to-serve mouthwatering treat.
"American Capital is the right partner for Future Food's growth," said Future Food CEO Dave Watts. "American Capital's support and food industry experience places us in a better position to increase our customer base, add new cross-selling products and increase our geographic penetration."
For more information about Future Food's delicious refrigerated dips, spreads and seafood salads click here. As of June 30, 2004, American Capital shareholders have enjoyed a total return of 242% since the Company's IPO - an annualized return of 20%, 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 over $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, Principal and Senior Vice President, Business Development, at (800) 248-9340, or visit our website. Transition Capital Partners, Ltd., formed in 1993, is a private equity firm investing in leveraged recapitalizations and management buyouts. Since inception, TCP has invested in over 22 companies and currently manages active investments in 14 portfolio companies, including one co-investment with American Capital.
Private Equity Partners is a generalist private equity firm based in Fort Worth, Texas. PEP provides equity capital for growth, recapitalization and buyout transactions.
Texas Capital Bank is a commercial bank that delivers financial services to businesses and private clients in Austin, Dallas, Fort Worth, Houston, Plano, and San Antonio.
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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