Bethesda, MD - November 7, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it it has invested $12.5 million in Northwest Coatings Corp., a leading developer and manufacturer of customized specialty energy-curable (UV/EB, ultraviolet and electron beam) and water-based coatings and adhesives servicing the tag and label, packaging, printing and other industries. American Capital’s investment takes the form of senior subordinated debt and common and preferred equity. The investment supports the acquisition of Northwest Coatings by Caltius Capital Management from a group of private investors. Antares Capital Corporation provided the senior financing and is investing in the common and preferred equity. Northwest Coatings management is also investing in the equity.
“In spite of continuing economic uncertainty, American Capital is enjoying an excellent year,” said American Capital COO Ira Wagner. “As we partner with a respected private equity group, we add Northwest Coatings, a leading specialty niche manufacturer in a fragmented industry, to our growing portfolio.”
American Capital has invested more than $550 million in the past twelve months and over $400 million this year.
Click here for more information about American Capital's portfolio.
“We are backing a company with a strong industry reputation that has successfully capitalized on its technical leadership, strong customer relationships and the ability to develop formulations to meet specific customer needs while enjoying the growth in the energy-curable coatings and adhesives segment as well as several of their end-use markets,” said American Capital Principal and Managing Director Jeri J. Harman. “We see Northwest’s seasoned management team continuing to expand their leading market share and develop new, technologically advanced and environmentally friendly products.”
Northwest Coatings was founded in 1970 to manufacture customized water-based adhesives and coatings for regional industrial customers. The company now manufactures a wide range of primarily energy-curable adhesives and coatings for customers worldwide. Northwest Coatings has experienced exceptional success in the tag and label market, where it has secured the position of market leader with its energy-curable adhesives and coatings. The company’s product customization, new product development and excellent service have won it the 2001 Frost & Sullivan Customer Service Leadership Award.
“American Capital provided the financing we needed to close the transaction,” said a Caltius Capital spokesperson. “We are pleased to partner with American Capital as we support Northwest Coatings’ strategic expansion and continued technological advancement.”
For more information about Northwest Coatings and its customized products click here.
You Can't Restate a Dividend!
American Capital has declared a $.67 per share dividend to be paid on December 31, 2002 to record holders as of December 12, 2002. This dividend is an 18% increase over the fourth quarter 2001 regular dividend of $0.57 per share. American Capital has paid or declared $10.31 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.
