Bethesda, MD - February 21, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $24.3 million to support the recapitalization of CPM Acquisition Corp., doing business as California Pellet Mill ("CPM"), the world's leading supplier of process machinery for the animal feed and oilseed processing industries. American Capital's investment takes the form of a senior term loan and senior subordinated note with warrants. US Bank NA and Harris Bank provided a senior term loan and a revolving credit facility. The Compass Group International LLC, which acquired the company in 2001, is the equity sponsor.
"As we close on our second transaction of the year, American Capital maintains an impressive backlog," said American Capital COO Ira Wagner. "American Capital is adding a world leading niche manufacturer in two industries to our diversified portfolio of 70 companies. In addition, we are pleased to be in business with The Compass Group for the first time."
American Capital has invested more than $500 million in middle market companies in the last twelve months.
For more information about American Capital's portfolio click here.
"American Capital is backing a strong, global company that has captured dominant market shares worldwide with its outstanding reputation for reliability, high quality and excellent customer service," said American Capital Principal Ken Jones. "With increasing worldwide meat and vegetable oil consumption, the demands for animal pelleting and oil extraction equipment are also on the rise. With eight international locations and an extensive installed base of its products, California Pellet Mill is well-positioned to supply the increasing demands of the global marketplace."
With world headquarters in Waterloo, IA, California Pellet Mill introduced the first commercially successful pellet mill for the production of animal feeds in 1931. The company now manufactures a complete line of machinery for the animal feed and oilseed extraction industries, including pellet mills, flaking equipment, spare parts, dies and shells under three recognized brand names - CPM, Roskamp and Champion. With over 300 employees and eight locations in North America, Europe, and Asia, California Pellet Mill has grown to be the largest pellet mill company in the world. The company's customers include Perdue, Tyson Foods, Archer Daniels Midland and Cargill. Pictured at left is the one of CPM's pellet mills, ideal for producing pellets for poultry and hog feed in very demanding environments.
"We are pleased to be partnering with American Capital to support the continued growth of California Pellet Mill as it expands its product line and attracts new clients both domestically and abroad," said Joe Massoud, The Compass Group Managing Director.
Click here for more information about California Pellet Mill's global success.
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.
The Compass Group International, LLC is a private investment firm providing equity capital to small and middle market companies. The Compass Group provides funding for pursuit of growth opportunities, ownership changes and recapitalizations. The Compass Group acquires interests in a broad range of industries, with a preferred investment size of $4 million to $30 million.
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.
