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Bethesda, MD - October 27, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $15 million in Pelican Products Inc. ("Pelican"), a global leader in the design, development and manufacture of unbreakable, watertight protective cases and technically advanced professional flashlights. American Capital's investment takes the form of a second lien loan and supports Behrman Capital's acquisition of Pelican. A syndicate led by GE Capital Corporation, a unit of General Electric Corporation (NYSE: GE), is providing a revolving credit facility, senior term loans and a second lien loan. Behrman Capital and Pelican management are investing in equity.
"American Capital is pleased to be investing with Behrman Capital again," said American Capital COO Ira Wagner. "Pelican is a leader in its industry and we believe it is an excellent addition to our portfolio of investments."
American Capital has announced investments of over $1.6 billion in the last twelve months, over $1.2 billion year to date and over $55 million quarter to date.
For more information about American Capital's portfolio click here.
"Pelican's leading position in its growing niche markets can be attributed to its ability to continually develop a wide array of proprietary products that offer superior durability and performance and are all backed by its unconditional lifetime guarantee," said American Capital Principal John Thornton. "In addition, Pelican's extensive portfolio of safety approvals and long-term contract with the General Services Administration allow it to enjoy a significant barrier to entry in its industrial, government and military markets."
"Pelican's high-quality, durable products, as well as its strong brand recognition, place it in an excellent position to benefit from the anticipated increases in demand across its served global end markets," said American Capital Vice President Natasha Volyanskaya. "We are excited about Pelican's growth opportunities, driven by new product development and international and domestic expansion."
 Founded in 1976, Torrance, CA-headquartered Pelican is a leading manufacturer of protective cases and professional flashlights. The Company's unbreakable, watertight and dustproof cases exceed the highest industrial and military specifications and are used to protect a variety of commercial, military and recreational products. Pelican's professional-grade flashlights are widely recognized for their superior performance and are used by industrial, fire services, military and government customers. Recent earnings growth has exceeded 20% annualized. The Company has operating facilities in California, Canada and Spain and has over 400 global trademarks, holds 32 patents and has 10 patents pending. Pictured at left is the Pelican™ Protector Case™, a strong and durable case used to protect valuable equipment from impact, vibration and shock.
"We are pleased to be investing alongside American Capital, an experienced financial partner with a wealth of investment knowledge that was able to provide the necessary capital to complete this transaction," said Behrman Capital Managing Partner Grant G. Behrman. "With the strong support of our investment partners, Pelican is in an even better position to expand its business and continue its strong track record of success."
As of September 30, 2004, American Capital shareholders have enjoyed a total return of 291% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $583 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 $4.2 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.
Based in New York City and San Francisco, Behrman Capital was founded in 1992 by Grant G. Behrman and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth companies and provides expansion capital to emerging growth companies. The company's investments are focused primarily in four industries: information technology, contract manufacturing, outsourcing and healthcare. The firm currently has a combined capital base of $1.8 billion.
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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