Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS), today announced it invested $15 million in equity and subordinated debt to fund the recapitalization of the Inca Group, a leading Texas based manufacturer of steel products for the construction, distribution and manufacturing industries. American Capital partnered with David Rosenfield, founder and Chairman of the Inca Group, in structuring a transaction that provides long term growth capital for the company. Fleet Capital provided additional financing for this transaction.
Inca consists of three companies: Inca Metal Products Corp, the nation's 7th largest rack and shelving manufacturer; Dallas Tube, a manufacturer of mechanical and structural steel tubing and Andes Metal Processors, a toll processor for large steel mill customers. Inca Metal Products was initially founded in 1939.
David Rosenfield, said, "American Capital's investment in the company will fuel Inca's continued growth, improve our market position and take customer service to the next level. We are happy with the flexible capital that American Capital has provided and feel they will make good partners as we build the foremost company in the industry."
American Capital Principal, Gordon O'Brien, commented, "Inca is an attractive group of companies with a strong track record and a team of the industry's most experienced management. We are very pleased to be working with David Rosenfield and the strong team he has built. David represents the ideal partner for American Capital. He will continue to provide the strategic vision and management of the company."
Chairman & CEO of American Capital Malon Wilkus stated, "We find it very satisfying to lead the recapitalization of such an outstanding company, and expect strong gains from our significant equity position in the company. We look forward to continuing to support Inca with our capital resources as the company grows and develops it multiple lines of business."
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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.
