Bethesda, MD - September 16, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $18 million in BPT Holdings Inc. and its subsidiaries (Bridgeport International). American Capital's investment provides financing for Bridgeport International's purchase of the common stock of Bridgeport Machines Ltd. (Bridgeport UK), located in Leicester, England, plus certain assets including intellectual property of Bridgeport Machines Inc. (Bridgeport US) in a transaction approved by the U.S. Bankruptcy Court in Wilmington, Delaware. Bridgeport UK and Bridgeport US were subsidiaries of the Goldman Industrial Group (Goldman), which together with Bridgeport US filed for bankruptcy protection on February 14, 2002. Bridgeport UK was not part of the bankruptcy filing. In their fiscal year ending June 2001, Bridgeport US and Bridgeport UK produced combined unaudited revenues and EBITDA of approximately $150 million and $19 million, respectively, and represented a substantial majority of the consolidated revenues and assets of Goldman.
Bridgeport International has also appointed Mr. Stuart Wilkins to be its Chief Executive Officer. In addition, Mr. Wilkins will continue to serve as Managing Director of Bridgeport UK.
American Capital also announced today that Bridgeport International has entered into a letter of intent with Hardinge Inc. (Nasdaq: HDNG) of Elmira, NY to form an alliance whereby Hardinge will assume responsibility in North America for the manufacture and distribution of Bridgeport knee mills, related parts and service support functions, and other products previously produced by Bridgeport US. Finalization of the alliance is contingent on the execution of definitive agreements and the satisfaction of certain conditions.
Bridgeport International's home office and core manufacturing facilities are located in Leicester, UK. Bridgeport UK manufactures and/or distributes its full line of vertical and horizontal milling machines, flexible grinding machines, lathes and knee mills. Bridgeport International has offices in the United Kingdom, Germany, Holland and the United States, with worldwide production and distribution throughout North America, Europe, the Middle East and Asia. For the fiscal year ending June 2001, Bridgeport UK had unaudited revenues and EBITDA of approximately $75 million and $11 million, respectively.
The Bridgeport US knee mill product line will be produced under an alliance with Hardinge. The Bridgeport knee mill product line is the leading brand of manual and computerized numerical control (CNC) milling machines in the world. They are sold globally to machine shops for virtually all basic metal cutting needs. There are an estimated 250,000 Bridgeport US milling machines operating world-wide. For the fiscal year ending June 2001, Bridgeport US had unaudited revenues and EBITDA of approximately $75 million and $8 million, respectively.
"American Capital has acquired an outstanding franchise in Bridgeport International with exclusive worldwide rights to the Bridgeport brand name and outstanding manufacturing facilities in the UK. The internationally acclaimed machine tool products manufactured in the UK together with the recently negotiated manufacturing and distribution alliance with Hardinge point to an excellent future for the company," said American Capital Chairman, President and CEO Malon Wilkus.
"The Bridgeport brand name is an icon of American manufacturing and is one of the most well known global brand names in the machine tool industry. We expect Bridgeport International to continue its leadership in the industry as a result of this reorganization," said American Capital COO Ira Wagner.
"The Bridgeport brand is synonymous with quality and reliability. Bridgeport International machine tools have a strong market presence within the automotive, aerospace and medical products industries based on years of excellent product development and innovation. Under new ownership, Bridgeport International's strong management team will build on the excellent history and global reputation that Bridgeport has enjoyed for over 60 years. We are excited to be working with Stuart Wilkins and his outstanding team," said American Capital's Managing Director, Tom Gregory.
The impact of the Goldman investment on American Capital's net operating income (NOI) and dividends have already been reflected in prior periods and will not impact future performance of NOI or dividends.
American Capital has declared a $.66 per share dividend to be paid on October 1, 2002 to record holders as of September 12, 2002. This dividend represents 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.
Last week, American Capital announced that it reiterated and did not change its February 2002 performance guidance, and that it updated responses to recent questions and comments on its website. American Capital has posted its performance guidance on the American Capital website. The updated responses are posted here.
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.
