Bethesda, MD - September 6, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that Sodexho Alliance S.A. (NYSE: SDX) has purchased American Capital's portfolio company Patriot Medical Technologies Inc. American Capital originally invested $6.7 million in Patriot in 1999. American Capital still holds loans totaling $5.2 million and retains equity interests in Patriot. Sodexho holds an option to purchase those equity interests beginning in 12 months, and American Capital has put rights to the company commencing next year.
"We are very pleased with Sodexho's investment in Patriot. Through this investment, Sodexho has advanced its commitment to the clinical maintenance and repair business. This should result in Patriot gaining substantial new business opportunities, with the possibility of Patriot growing considerably faster than it would otherwise," said American Capital Principal and Managing Director Gordon O'Brien.
Patriot is a leading national provider of clinical services, including the maintenance and repair of medical equipment, regulatory compliance services, cost containment programs and field services for hundreds of healthcare providers across the country.
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"American Capital's operations team, led by Managing Director Gordon O'Brien working with Michael Ranson, Vice President, has been working hard with Patriot management for some time to negotiate this transaction with Sodexho. We are excited about the upside potential of our equity interest," said American Capital COO Ira Wagner. "Year to date, American Capital has made $333 million in new investments. Our backlog of investment opportunities is outstanding and we are well on our way to making our forecast for the year."
American Capital has a declared a $.66 per share dividend to be paid on October 1, 2002 to record holders as of September 12, 2002. This dividend is an 18% increase over the third quarter 2001 regular dividend of $0.56 per share. American Capital has paid or declared $9.64 in dividends since its August 1997 IPO at $15.00 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.This press release contains forward-looking statements. 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.
