Bethesda, MD -- American Capital Strategies (Nasdaq:ACAS) announced today that it has invested $16.5 million in ConStar International Inc., a leading provider of design, integration and installation services of commercial electrical, telecommunications, and computer networking systems.
Celerity Partners, a private equity fund with offices in Los Angeles and Menlo Park, California, formed and led the investor group, which included First Dominion Capital.
Building on its roots in New England, ConStar has twenty-four years of experience and growth and is now licensed in more than twenty states. The company's outstanding design and build capability gives it a competitive advantage over many firms in the industry. Recent representative projects include the computer networking design and installation at Denver's Coors Field, the rebuild of the Malden Mills textile plant in Massachusetts, computer networking design and installation at the Foxwoods casino complex in Connecticut and numerous leading universities including Yale, the University of Boston, and the University of Connecticut. ConStar has a strong regional platform that has a tremendous opportunity to grow into a number of new markets. Stephen Bisson founded ConStar in 1976 and he will continue to serve as President.
American Capital Principal, John Freal commented, "ConStar has a consistent track record of growth and a tremendous client base that is the result of the ability to successfully design and implement its products. The company has also successfully created a marketing synergy between its Electrical and Networking Groups, which is a competitive advantage. We look forward to having ConStar in our portfolio."
Stephen Bisson, President of ConStar stated, "ConStar needs growth-oriented financial partners to support us so that we can take advantage of the many opportunities we see in this industry. American Capital certainly fits that bill and we are pleased to have them as a member of our team."
Malon Wilkus, CEO of American Capital commented, "ConStar is another example of our ability to invest in companies that are leaders in their industry and have strong management teams. With this investment, we have funded more than $37 million this quarter and $155 million since our IPO. This pace of investments has exceeded the pace projected by the analysts at the time of our IPO. We continue to be pleased with our pipeline of potential investments and the quality of our transactions."
American Capital is a buyout and specialty finance company with capital resources exceeding $190 million. American Capital invests $3 to $20 million in the form of senior debt, subordinated debt and equity to middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings. Companies interested in learning more about American Capital and its unique and flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at 781-862-4447 or visit its website at www.American-Capital.com or its shareholder site at www.ACAS1.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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.
