Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS), today announced the purchase of $4.2 million of senior notes, senior subordinated notes and detachable warrants issued by Caswell-Massey Holdings Corp, Inc. Caswell-Massey was established in 1752 and is one of America's oldest companies. The company produces and sells a full line of soap, fragrance and personal care toiletries through a variety of distribution channels including company-owned retail stores, retailers, a catalog, QVC, and in the next month, an e-commerce site.
American Capital's investment, in conjunction with the CIT Group which provided working capital financing and a syndicate of equity investors, is supporting a management buyout of Caswell-Massey led by Anne Robinson, who has been the driving force behind the company's resurgence the last three years.
"Anne Robinson is one of the strongest CEOs I have had the opportunity to work with. She combines a keen vision for this company with an ability to lead and has produced tremendous results over the last several years. We look forward to more of the same," said Adam Blumenthal, President and COO of American Capital.
American Capital Associate David Ehrenfest Steinglass added, "This transaction is a good example of how American Capital can add value through flexible financing. We were able to customize a capital structure that met this unique company's needs while maximizing the equity return to the entrepreneur."
"Caswell-Massey has a rich history, an outstanding reputation for quality products and a loyal customer following. With this change in ownership, I look forward to building on these wonderful assets," stated Anne Robinson, CEO of Caswell-Massey.
Chairman and CEO Malon Wilkus commented, "To date, we have made six investments this quarter totaling $33.4 million. We are extremely pleased at the diversity of investments and pace of the deployment of our capital since having raised $90 million in our follow-on offering earlier this quarter. We welcome Caswell-Massey as a great addition to our portfolio of companies and a perfect example of our new strategy of investing in consumer product companies and supporting the deployment of their products through the internet."
Click here for more information on this transaction.
Click here for more information about American Capital's portfolio.
American Capital is a buyout and specialty finance company with capital resources exceeding $365 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.
