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Bethesda, MD - November 3, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that affiliates of its portfolio company Bridgeport International LLC ("BIL") are receiving approximately $11 million from Hardinge Inc. (Nasdaq: HDNG) in the sale of the intellectual property rights, certain assets and certain inventory associated with Bridgeport's worldwide operations. The proceeds are expected to be used to repay American Capital debt. In 2002, affiliates of BIL entered into an agreement with Hardinge whereby Hardinge purchased the right to manufacture and distribute Bridgeport knee mills, related parts and service support functions, and other products in North America previously produced by a Bridgeport affiliate in the U.S. This affiliate of BIL will continue to receive royalties from that agreement with Hardinge. Hardinge is a leading international producer of advanced material-cutting solutions.
"This sale is an extremely positive development for our investment in Bridgeport," said American Capital Managing Director Gordon O'Brien. "Demand for Bridgeport's products has been strong and accelerating. We expect that the anticipated proceeds from the Hardinge knee mill contract as well as additional asset sales will yield significant additional proceeds to BIL."
As of October 31, 2004, American Capital shareholders have enjoyed a total return of 287% 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 declared $15.97 in 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 $4.3 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.
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, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
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