Bethesda, MD - February 4, 2003 - American Capital Strategies Ltd.
(Nasdaq:ACAS)announced today it has invested $33.5 million in Technical Concepts L.L.C., a global designer and marketer of "touch-free" automated products and other related products and services for hygiene and odor control in "away from home" restrooms. American Capital's investment takes the form of senior term notes and senior and junior subordinated debt with warrants. American Capital's proceeds will be used to partially finance the purchase of Technical Concepts by Liberty Partners. Technical Concepts management is investing in the equity.
"With this transaction, American Capital is off to a strong start in 2003," said American Capital COO Ira Wagner. "Our investment in Technical Concepts demonstrates our continuing growth in relationships with private equity funds. We are pleased to be working with Liberty Partners, our 10th new private equity partner over the last twelve months, to provide flexible financing to a strong, quality driven middle market company such as Technical Concepts, a strong niche manufacturer with a continuously expanding international reach."
American Capital has invested more than $500 million in the past twelve months.
For more information about American Capital's portfolio click here.
"American Capital is backing a leader that has distinguished itself through its development of proprietary technologies, top quality, reliable products and dedication to constant product innovation," said American Capital Vice President Myung Yi. "Technical Concepts is led by a highly regarded management team headed by its President, George Murphy. This team has extensive experience in the away from home restroom industry and in operating substantially larger domestic and international businesses, making this an even more attractive investment. With increasing industry concerns over disease transmission, restroom appearance and water conservation, Technical Concepts is well-positioned to meet growing market demands."
"We were very pleased to have worked with American Capital on this compelling investment opportunity," said Yvonne Marsh, Liberty Partners Managing Director. "Technical Concepts' industry leading products and strategic distribution channels are a firm foundation for rapid growth in both the new construction and renovation markets."
Technical Concepts, with world headquarters in Chicago, IL, was founded in 1987 as a niche supplier of bathroom air care products. Technical Concepts has expanded its product offerings, entering the "touch-free" automated away from home restroom industry by developing automated odor control products, automated cleaning and sanitizing products and automated touch free restroom systems, including automated flush systems for urinals and toilets, automated faucets and automated soap dispensers. With a firm commitment to top quality products and excellent customer service, Technical Concepts has established and maintained relationships with customers such as Rubbermaid, Ecolab, and Sloan Valve Company. With over 100 employees and three operations serving North America, Europe and Asia, the company has seen sales double over the last several years. Pictured at left is the OneShot Auto Soap System, an automatic through-the-counter soap system.
Click here for more information about Technical Concepts and its innovative products and proprietary designs.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1.5 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.
American Capital paid $2.55 in regular dividends in 2002, a 15% increase over 2001, and including the bonus dividend declared in 2002, paid or declared a total of $2.57 in dividends in 2002. American Capital has paid or declared a total of $11.00 per share in dividends since its August 1997 IPO at $15 per share. You Can't Restate a Dividend!
Liberty Partners (www.libertypartners.com) has a 10-year track record as a trusted partner to middle-market and growth companies. With approximately $1.8 billion under management, Liberty can invest up to $250 million of equity, senior debt, and mezzanine debt in any single portfolio company. Liberty has successfully completed over 35 transactions to date, including investments in the manufacturing, business services, healthcare, and technology industries.
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.
