Bethesda, MD - July 22, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $15 million in CIVCO Holdings ("CIVCO"), a company formed by KRG Capital Partners LLC to take private Colorado MEDTech ("CMED") (Nasdaq: CMED), which through its subsidiary, CIVCO Medical Instruments Co., is the market-leading designer, manufacturer and marketer of leading edge disposable and consumable accessory technologies supporting the ultrasound imaging equipment manufactured by virtually all major ultrasound OEMs globally. American Capital's investment takes the form of senior subordinated debt with warrants, redeemable preferred stock and common stock. Madison Capital Funding (an affiliate of New York Life Investment Management) and Merrill Lynch Capital provided a revolving credit facility and a senior term loan to help finance the acquisition.
"American Capital is adding to its portfolio a leading global manufacturer on the leading edge of the ultrasound imaging equipment industry," said American Capital COO Ira Wagner. "We are pleased to be working again with KRG Capital to assist in the growth of another excellent middle market company."
American Capital has invested more than $700 million in the last twelve months.
For more information about American Capital's portfolio click here.
American Capital is supporting the continued success of a strong company that has risen to its market leadership position through unparalleled performance in working closely with ultrasound OEMs," said American Capital Principal and Managing Director Darin Winn. "CIVCO works with OEMs from the early R&D stage through and beyond product launch, ensuring that their equipment is as versatile as it can be, while providing the OEM customer base with the highest level of service. Competing in a highly fragmented industry, CIVCO has successfully differentiated itself as the OEM partner of choice with its premium quality products, delivery performance, extensive global distribution network, global regulatory compliance, complete product line, and superior customer service. CIVCO is well-positioned to meet the industry's growth demands driven by exciting developments in ultrasound imaging technology, while leveraging its relationships with global OEMs to expand its product line into other imaging modalities."
Founded in 1981, Kalona, Iowa-headquartered CIVCO's primary product lines include equipment covers, imaged-guided biopsy systems, ultrasound supplies and imaging equipment positioning systems. CIVCO operates out of two facilities located in Kalona, IA and Sarasota, FL and employs over 120 people. Customers include General Electric Medical Systems, Philips Medical Systems, B-K Medical, Boston Scientific and Siemens Medical Systems, Inc. Pictured at left (from top) are examples of CIVCO's endocavity equipment covers and biopsy needle guide systems, as well as its imaging equipment positioning system used during minimal invasive surgical procedures.
"American Capital has again proven to be an excellent partner, providing the necessary cost effective capital to close this transaction," said KRG Capital Partners Managing Director Bruce Rogers. "We look forward to working with our investment partners and CIVCO management to build upon the company's vision of creating a dominant global one-stop-shop for imaging accessories across multiple imaging modalities."
As of June 30, 2003, American Capital shareholders have enjoyed a total return of 177% since the Company's IPO -- an annualized return of 19%, assuming reinvestment of dividends. American Capital has paid 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 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.
