BETHESDA, Md., June 17 -- American Capital Strategies, Ltd. (Nasdaq:ACAS) today announced the purchase by its affiliate ACS Funding Trust I of $6,500,000 of senior subordinated debt issued by Starcom Holdings, a leading provider of design, integration and installation services for commercial electrical, telecommunications and computer networking systems. American Capital made an initial investment in Starcom in December 1998. It is making the current investment to finance Starcom's acquisition of two leading private companies in the electrical services industry. Equity for the transaction was provided by the existing shareholders, which include Celerity Partners, First Dominion Capital and American Capital.
Both the acquired companies were founded in the 1960's and have become the most significant electrical contractors in their respective markets of New York and North Carolina. Each company focuses only on electrical services and has market recognition for quality and superior customer service.
Starcom President Mark Benham commented, "By these acquisitions, we have expanded our ability to offer a single solution for our current and prospective customers' electrical, telecommunications and computer networking requirements. Starcom delivers complex services on time and within budget, and is now able to provide these services over a broader geographic area."
Adam Blumenthal said, "We are partners for the long-term with Starcom. Starcom is positioned to grow as technology changes and lead the industry in the trend toward the design and build method for electrical and networking installations. American Capital hopes to continue to have the opportunity to support that growth."
Chairman and CEO Malon Wilkus noted, "Our three transactions so far this quarter have been good examples of American Capital's ongoing ability to partner with its portfolio companies. Last week we funded $0.5 million to Auxi Health, Inc. for its acquisition through a subsidiary of HealthCor's Texas Community Care Service offices."
The acquired offices provide care under Texas state programs that Auxi participates in through its wholly-owned subsidiary, Jackson Healthcare Systems. This brings American Capital's total investment in Auxi Health to $12.6 million.
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American Capital is a buyout and specialty finance company with capital resources exceeding $275 million. American Capital invests $3 to $20 million in senior debt, subordinated debt and equity in 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 (800) 248-9340 or visit its website at www.American-Capital.com or its shareholder site at www.ACASOnline.com.
