Bethesda, MD - July 30, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $33 million in the acquisition of Roadrunner Freight Systems Inc., a transportation services company based in Milwaukee, WI. American Capital's investment takes the form of senior and junior subordinated debt with warrants and common equity. LaSalle Bank N.A. provided a revolving credit facility and senior term loan. Following the transaction, on a fully-diluted basis American Capital will have 75% ownership while management will retain 25% of the company.
"We are enthusiastic about working with Roadrunner and its seasoned management team to continue their plans to grow the business," said American Capital COO Ira Wagner. "This is our fourth new portfolio company investment of the third quarter, our 15th of the year, and the second buyout led by American Capital in 2003. We have invested a total of $496 million year-to-date."
American Capital has invested over $700 million in the last twelve months.
For more information about American Capital's portfolio click here.
"American Capital is supporting the growth of an outstanding company that has excelled through its ability to provide superior, rapid and reliable delivery service to its diverse customer base," said American Capital Principal Jon Isaacson. "Roadrunner's differentiated business model has allowed it to surpass its competition in an industry where businesses are turning to alternatives to the traditional long-haul less-than-truckload carriers. We believe the incumbent management team, led by co-founder, President and CEO Bill Troyk and COO Barry Turner, will be able to grow the business aggressively through increased penetration in existing locations and developing new markets while continuing to focus on customer service."
Founded in 1984 in Milwaukee, WI, Roadrunner Freight Systems Inc. is an inter-regional freight services company that consolidates less-than-truckload shipments into full truckloads, minimizing the need for intermediate handling. The company operates a network of nine terminals in Milwaukee, Chicago, Dallas, Atlanta, Nashville, Charlotte, Los Angeles, Cincinnati and Cleveland, employs approximately 400 and has annual sales of over $125 million. Roadrunner's unique business model provides its diverse customer base among the fastest transit times and lowest claims ratios in the industry.
"By partnering with American Capital and LaSalle Bank we are well-positioned to enter new markets with our premium services and expand Roadrunner's national presence," said COO Barry Turner.
For more information about Roadrunner's premium, trucking services, go to: http://www.americancapital.com/news/press_releases/pr/pr.cfm?p_pr=pr20030730a.html.
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.
