BETHESDA, Md., Aug. 31 /PRNewswire/ -- American Capital (Nasdaq:ACAS), today announced that it has supported veteran transportation executive Jimmy D. Crisp by providing the institutional junior capital needed to purchase Dixie Trucking, Inc. Mr. Crisp, who has over 20 years experience in the transportation industry, recently resigned as President of Saia Motor Freight, a $340 million revenue company, to purchase and operate Dixie.
American Capital's investment consisted of the purchase of $4.2 million of senior subordinated debt with detachable warrants. Dixie Trucking is a business to business, next-day short haul freight carrier. Wachovia Bank provided senior term loan funding and a revolving credit facility to complete the transaction. Dixie Trucking was established in 1959 and is a leading next-day early delivery commercial carrier in North and South Carolina, northern Georgia and southern Virginia. Dixie services the region's rapidly growing industrial base with early morning deliveries vital to the operation of lean manufacturing and just-in-time inventory systems.
Mr. Crisp commented, "I have observed Dixie in the marketplace and admired the focus on servicing the customer for many years; it is a great company because its people are skilled, knowledgeable, and incredibly close to their customers. It has a market niche that I don't believe any other company can touch. The move to efficient manufacturing systems in our region is driving the demand for the kind of service only Dixie can provide economically. I'm proud to be joining a company that is the best in its class, and I am looking forward to leading its future."
American Capital Principal Virginia Rollins commented, "With Jim's industry experience and vision, and American Capital's financial savvy and resources, Dixie now has the tools for spectacular growth. We are pleased to be a part of this great company and to complete yet another buyout."
American Capital President and COO Adam Blumenthal said, "We welcome Jim to the group of entrepreneurs for whom we have funded acquisitions and provided growth capital in the past two years. In industries as diverse as plastic injection molding, transportation, food and beverage manufacturing, sporting goods, communications and hospital maintenance outsourcing, we have partnered with experienced industry veterans whose vision and track record have set their companies head and shoulders above their competitors. We are proud that we have created opportunities for these individuals with our financial resources, and that they in turn are driving American Capital's growth."
Click here for more information about this transaction.
For more information about American Capital's portfolio click here.
American Capital is a buyout and specialty finance company with capital resources exceeding $360 million. American Capital invests 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 our flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at (800) 248-9340 or visit our website at www.AmericanCapitalOnline.com or our shareholder site at www.ACASOnline.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.
