Bethesda, MD - April 15, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $49 million in FMI International, Inc., a leading third party logistics provider to the U.S. apparel industry, in support of a recapitalization led by KRG Capital Partners LLC. In addition, Credit Agricole Indosuez is providing $20 million of financing and FMI management is investing in the transaction, retaining significant ownership in the company. BB&T Capital Markets represented FMI in this transaction.
"Our investment in FMI is a strong addition to our growing and diversified portfolio of 74 companies," said American Capital COO Ira Wagner. "FMI is a niche leader in a growing industry, with a strong management team dedicated to providing excellent service to both its core customer base and its more recently acquired customers. We are pleased to be working with KRG Capital for the fifth time since 1999 to support the growth of another market leader."
American Capital has invested nearly $700 million in the last twelve months.
For more information about American Capital's portfolio click here.
"American Capital is backing a unique, leading company that has captured market share through its distinct strategic advantage of providing its customers with a full line of logistics and inventory management services," said American Capital Principal and Managing Director Darin Winn. "With a strong presence at three major U.S. ports, New York, Los Angeles and Miami, a strong customer base and a complete line of integrated transportation services, the company's experienced management team is in an excellent position to capitalize on the expected continued growth of the U.S. import apparel industry as more apparel companies utilize overseas manufacturing, resulting in an increased need for import logistics services. In addition, FMI is expanding its markets to include footwear and household goods."
Founded in 1979, FMI offers a fully integrated line of logistics services, including freight forwarding, transloading, warehousing, distribution, and local and long distance ground transportation to the U.S. import apparel industry. Along the entire transport route, FMI offers a comprehensive inventory tracking system that enables customers to locate their merchandise at any point on the supply chain. FMI is one of the few companies in the industry with expertise in garment-on-hanger shipping, a shipping method in which delicate apparel remains hung on slick rails throughout its transport, avoiding the weight and pressure of other garments that could adversely affect their appearance. FMI's major customers include Jones Apparel Group, Liz Claiborne, Polo Ralph Lauren, and Federated Department Stores. Headquartered in Carteret, NJ, FMI employs over 500 employees and has experienced annual growth of over 19% per year since 1999. Pictured at left is an example of FMI's fully integrated line of services, ensuring the seamless transport of apparel from international manufacturing locations to U.S. retail distribution centers.
"American Capital, once again, was a great partner," said KRG Capital Partners Managing Director Charlie Gwirtsman. "We look forward to working with American Capital, Indosuez and FMI management to support the company as it capitalizes on growing market demands and cross-selling opportunities."
For more information on FMI and its unique line of transportation services click here.
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. Including its $.67 dividend paid at the end of the first quarter of 2003, American Capital has paid or declared a total of $11.00 in dividends since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1.7 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 should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
KRG Capital Partners LLC is a Denver, CO based private equity firm focused on middle market buyouts. The firm specializes in acquiring controlling interests in platform companies and growing then via add-on acquisitions and internal growth. KRG invests between $10 million and $80 million of equity in platform companies. ACAS has invested with KRG on four prior transactions: Atlantech International Inc., a manufacturer of high-performance geogrids, Case Logic Inc., a designer and manufacturer of storage products and accessories, Trinity Hospice LLC, a provider of hospice care, and TransCore Holdings Inc., a provider of transportation information management systems and service.
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.
