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Bethesda, MD - November 30, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $66 million in BBB Industries Inc., a leading remanufacturer of starters and alternators for sale in the automotive aftermarket. American Capital's investment takes the form of a revolving credit facility, senior term notes and senior subordinated debt to provide liquidity for the growth needs of the Company. ShoreView Industries is the sponsor. BBB's current senior management team is remaining with the company.
"American Capital has supported transactions for 59 equity sponsors over the past 7 years, with ShoreView our 19th new sponsor relationship in the last twelve months," said COO Ira Wagner. "BBB is a fine example of the type of company American Capital generally seeks to invest in: a healthy, growing company with a clear strategy; an excellent market position; strong competitive advantages; and finally, outstanding execution of their business plan on a daily basis."
American Capital has invested over $1.6 billion in the last twelve months, over $1.4 billion year to date and over $200 million quarter to date.
For more information about American Capital's portfolio click here.
"We're happy for the opportunity to partner with ShoreView Industries to provide capital to fuel BBB's growth under its current management and maintain the company's strategic direction. BBB's strong financial performance and experienced team of management owners positions the company to take advantage of favorable industry dynamics," said American Capital Managing Director Frank Do. "Most notably, starters and alternators are essential components of cars, with steady forecasted growth in replacement demand."
"We look forward to working with ShoreView and the management owners to continue to build upon BBB's solid market position," added American Capital Vice President Kimberly Chu.
 Founded in 1987, BBB is headquartered in Mobile, AL and operates a 170,000 square foot manufacturing facility in Reynosa, Mexico, which is the only facility in the industry ISO/TS 16949 certified. The Company currently has over 1,300 employees. Pictured here are examples of BBB's top quality remanufactured alternators for both the import and domestic vehicle market.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $4.3 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity 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.
As of October 31, 2004, American Capital shareholders have enjoyed a total return of 287% since the Company's IPO - an annualized return of 20.7%, assuming reinvestment of dividends. American Capital has paid a total of $583 million in dividends and paid or declared $15.97 dividends per share since its August 1997 IPO at $15 per share.
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.
ShoreView Industries, based in Minneapolis, manages a $300 million private equity limited partnership. ShoreView invests this partnership in middle-market companies with operations in North America, across a wide range of industries. ShoreView structures a variety of acquisition, recapitalization and build-up transactions, typically in businesses with revenues ranging between $20 million and $150 million. The Principals at ShoreView have completed over 40 lower middle-market transactions together over the past several years.
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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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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