Bethesda, MD - June 03, 2003 - American Capital Strategies Ltd.
(Nasdaq:ACAS) announced today that it has invested $10 million in senior subordinated
debt and common equity in Money Mailer Holdings LLC, a leading shared
mail direct marketing company serving local and national advertisers.
American Capital's proceeds will be used to partially finance the
purchase of Money Mailer by Roark Capital Group. Merrill Lynch provided
a revolving credit facility and senior term loans.
"This is American Capital's fifth new portfolio company investment
of the second quarter, our eleventh of the year and we have a strong
backlog of transactions going forward," said American Capital COO
Ira Wagner. "Our ability to provide flexible capital at competitive
pricing and conduct thorough due diligence in a timely manner makes
us an excellent partner for equity sponsors. By partnering with
Roark Capital, a private equity firm with extensive knowledge of
and success with franchising companies, we are supporting the continued
growth and expansion of a strong middle market company."
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 investing in a premier company that has utilized
its franchise model to excel in the marketplace and capture significant
market share," said American Capital Principal Robert Klein. "We are confident that the management team, with Roark
Capital's support, will continue to capitalize on Money Mailer's
diversified customer base, excellent product quality, extensive
network of regional sub-franchisors and local franchisees and favorable
industry conditions to significantly increase Money Mailer's market
share."
Garden Grove, CA headquartered Money Mailer was founded in 1979
and has successfully grown to hold the second largest position in
the shared direct mail advertising industry. Shared direct mail
advertising combines advertisements usually containing discounts
or coupons from multiple advertisers, both local and national, into
a single mail envelope for residential distribution. Money Mailer
mails over 120 million envelopes to more than 16 million residential
homes, recording sales of over $60 million in 2002. The company
currently employs approximately 280 and is expanding into another
facility to accommodate its growth. Pictured at left is an example
of Money Mailer's product, effectively targeting and reaching
millions of households nationwide.
"American Capital, with its flexibility and hard work, proved
to be a perfect investment partner," said Roark Capital Founder
Neal Aronson. "Our investment in Money Mailer is an exciting
opportunity to support a strong company with excellent growth prospects
operating in one of the fastest growing segments of the direct mail
industry."
For more information about Money Mailer's efficient and highly targeted business model, 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. American
Capital has paid or declared a total of $11.68 in dividends since
its August 1997 IPO at $15 per share, including $.68 per share dividend
declared for the second quarter of 2003.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of 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.
