Bethesda, MD - May 22, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $15 million of senior subordinated debt with warrants in Bumble Bee Seafoods Inc., a leading global producer and marketer of canned tuna and other seafood and the leader in the premium albacore tuna market. American Capital's investment supports the acquisition of the assets and operations of Bumble Bee from ConAgra Foods Inc. by management and affiliates of Centre Partners Management LLC. In addition, affiliates of Audax Mezzanine Fund L.P. provided a portion of the senior subordinated debt and affiliates of Fleet Capital Corporation led and underwrote a revolving credit facility and a senior term loan.
"This is American Capital's fourth transaction of the quarter and tenth in 2003, bringing our current portfolio to 74 companies," said American Capital COO Ira Wagner. "American Capital's investment in Bumble Bee is our eighth investment in 2003 in a company being purchased by an experienced private equity fund, and the 14th time in the past 12 months we have invested for the first time with a new private equity relationship. We are pleased to be investing alongside Centre Partners in this transaction."
American Capital has invested approximately $700 million in the past twelve months.
For more information about American Capital's portfolio click here.
"American Capital is backing a global leader with a highly recognizable brand name that has been producing quality canned seafood products that have been household staples for millions," said American Capital Principal and Managing Director Jeri Harman. "Bumble Bee enjoys an extensive global reach, excellent relationships with leading national grocery retailers and mass merchandisers, recent successful product innovations, the broadest mix of canned seafood products in the marketplace and the leadership of a high caliber management team. The company is well-positioned for continued success and growth as a stand-alone company and to capitalize on recent industry leading marketing and growth initiatives and continue to provide its high quality canned seafood for years to come."
Bumble Bee, with world headquarters in San Diego, CA, has annual revenues of over $500 million and in addition to its leading position in the canned albacore tuna market, has established the second leading position in the U.S. market and leading positions in other major canned seafood markets such as salmon and specialty canned seafood. The company sells its broad range of products under the well-known brands Bumble Bee, Clover Leaf and Orleans. Pictured at left is an example of Bumble Bee's highly recognizable and trusted products.
"We are pleased to be working for the first time with American Capital as we invest to support the continued growth and expansion of an industry leader," said Centre Partners Managing Director Scott Perekslis. "With American Capital, our other financing partners, and Bumble Bee's seasoned management and dedicated employees, we look forward to supporting management's strategy for the continued global growth of Bumble Bee."
As of April 30, 2003, American Capital shareholders had enjoyed a total return of 160% since the Company's IPO -- an annualized return of 18%. This assumes reinvestment of $11.00 in dividends paid per share during this period. On April 24, 2003, American Capital declared a $0.68 per share dividend to be paid June 30, 2003 to record shareholders as of June 12, 2003. American Capital has paid or declared a total of $11.68 per share in dividends since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources approximately $1.8 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.
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.
