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Bethesda, MD - September 2, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $14 million in its portfolio company Dynisco LLC to support Dynisco's acquisition of Alpha Technologies US LP, the leading global designer and manufacturer of precision instruments and software for the rubber processing industry. American Capital's investment takes the form of senior subordinated debt, intermediate subordinated debt with warrants and common equity, bringing American Capital's total current investment in Dynisco to $28 million. A syndicate led by Antares Capital Corporation is providing a revolving credit facility and investing in senior term loans. Audax Private Equity invested additional equity in the transaction and maintains its majority ownership of Dynisco.
"With this investment, American Capital is demonstrating its commitment to the growth of our portfolio companies," said American Capital COO Ira Wagner. "We are pleased to be investing again with Audax Private Equity as they build Dynisco into a global test and measurement company serving diverse end-markets."
American Capital has invested over $1.5 billion in the last twelve months and over $900 million year to date.
For more information about American Capital's portfolio click here.
 "Alpha and Dynisco possess complementary technologies and strong shares in their respective markets; we are excited about the opportunity each company will now have to bring its technology into the others' markets," said American Capital Managing Director David Steinglass. "In addition, Dynisco should be able to leverage Alpha's global sales and service organization."
In business since 1968, Akron, OH-headquartered Alpha Technologies manufactures precision rubber and polymer laboratory instrumentation and data acquisition and analysis software systems. Alpha's core product line of rheometers analyzes physical properties such as viscosity and elasticity of rubber throughout the manufacturing process. The Company's software is capable of collecting, tracking and integrating data from a variety of testing devices both within an industrial lab and in the production process. Alpha also provides services for its precision instruments, including aftermarket calibration, repair and preventative maintenance in over 60 countries through its own service forces and local agents. In addition to its Ohio headquarters, Alpha has sales offices throughout Europe and Asia. Pictured above is Alpha's Oscillating Disk Rheometer ("ODR") used to measure the cure characteristics of compound rubber. Alpha's ODR was recognized as one of the top tire technological achievements of the 20th century at the 2000 International Tire Exhibition.
American Capital first invested $15 million in Dynisco in July 2004, supporting Audax's acquisition. Headquartered in Franklin, MA, Dynisco was the first to design a transducer specifically used to measure the melt pressure of plastic during the extrusion process. The company sells its products under the Dynisco and Beringer brand names. Dynisco outsources the manufacturing of components for its products while focusing its internal efforts on engineering, design, assembly and testing. The company has assembly facilities in the United States and Germany and sales offices throughout the European Union. Dynisco serves a diverse group of customers in North America, Europe, Asia and Latin America, including OEMs, resin producers, distributors and end users served directly by Dynisco.
"Having recently worked with American Capital in our July acquisition of Dynisco, we felt confident that they were the right partner for our expansion strategy at Dynisco," said Audax Principal Oliver Ewald. "The combined company is in a strong position to prosper as the rate of adoption of sophisticated test and measurement equipment in plastic and rubber manufacturing increases."
Click here for more information about Dynisco's high quality devices.
As of August 31, 2004, American Capital shareholders have enjoyed a total return of 281% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $524 million in dividends and paid or declared $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3.3 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.
Audax Group, founded in 1999, is a leading investor in middle market companies. With offices in Boston and New York, Audax manages in excess of $1 billion in equity and mezzanine debt capital.
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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