Bethesda, MD - April 16, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has invested $9.3 million in Nailite International Inc. ("Nailite"), a niche manufacturer of molded polypropylene siding ("MPS") for the remodeling and new construction housing markets. American Capital's investment takes the form of senior subordinated debt with warrants and supports the acquisition of Nailite by Graham Partners. A syndicate led by National City Bank is providing the revolving credit facility and a senior term loan. Nailite management is also investing in the transaction.
"We are pleased to be investing with Graham Partners for the first time," said American Capital COO Ira Wagner. "Graham Partners has significant expertise in plastics processing and building products, which we expect will enhance our investment. We continue to build relationships with private equity sponsors, with this transaction representing the sixteenth time in the past 12 months we have invested for the first time with a private equity sponsor."
American Capital has invested nearly $700 million in the last twelve months.
For more information about American Capital's portfolio click here.
"With the investment in Nailite, American Capital is backing the absolute leader in design and innovation with a solid brand name, often used as the generic term for injection molded siding, in a rapidly growing, attractive sector of the siding market," said American Capital Principal Ken Jones. "As the only player in the industry solely dedicated to the manufacturing of molded polypropylene siding and with a diversified customer and supplier base, Nailite is in an excellent position to prosper and capture market share in both the remodeling and new construction space."
Founded in 1978, Nailite International Inc. was the first company in the siding business to develop an injection molded siding product that replicates the appearance of the traditional siding materials of natural cedar, brick and stone, thereby offering homeowners the low cost and minimal maintenance benefits of artificial siding without having to sacrifice aesthetics. The company's products are used in the remodeling and construction of homes and serve top national and regional distributors. Nailite offers its customers a wide product offering with proprietary designs, colors and shadings that are difficult to replicate by competitors. Nailite has seen sales more than double since 1997 with annual sales growth of over 20%. The company is based in Miami, FL and has over 140 employees.
Pictured at left are the RoughSawn Cedar panels, providing an attractive alternative to traditional cedar at a fraction of the cost and maintenance.
"Partnering with American Capital and National City Bank provides the resources to increase Nailite's penetration into the whole-house and new construction segments, as well as enter untapped geographic markets," said Graham Partners Managing Principal Joe May.
For more information on Nailite and to see examples of its differentiated product offerings 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.
Graham Partners is a private equity firm that manages a $227 million fund and is focused on acquiring and investing in privately held middle-market industrial companies. Graham's strategy is to acquire companies that are benefitting from a raw materials conversion trend in the markets in which they compete. Graham Partners is an investment affiliate of the Graham Group, a privately-held investment and industrial concern with operating interests in plastic processing, packaging, building products, and machinery manufacturing, among other 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.
