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Bethesda, MD - September 15, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $65 million in BarrierSafe Solutions International, which now owns Microflex Corporation and FoodHandler Inc., two leading companies in the development and marketing of disposable gloves and related products in a variety of end use markets. American Capital's investment takes the form of a senior term loan and senior and junior subordinated debt. Microflex Corporation was a portfolio company of Riverside Partners and FoodHandler Inc. was a portfolio company of StoneCreek Capital. Riverside Partners and StoneCreek Capital will be the majority owners of BarrierSafe and BarrierSafe management will hold a significant equity stake. As subsidiaries of BarrierSafe, FoodHandler and Microflex will continue to operate out of their respective headquarters in Westbury, NY and Reno, NV, and will maintain their brands in the markets they serve.
"We are pleased that Riverside and StoneCreek came to us to support the attractive merger of two leaders in the disposable glove industry, creating a stronger niche player in the industry," said American Capital COO Ira Wagner. "We're looking forward to working with Riverside and StoneCreek, two new sponsor relationships, as well as with BarrierSafe Solutions management to grow this new partnership. BarrierSafe Solutions now joins our diversified portfolio of over 100 middle market companies."
American Capital has invested over $1.5 billion in the last twelve months, over $950 million year to date and over $250 million quarter to date.
For more information about American Capital's portfolio click here.
"American Capital is backing the combination of two companies that hold significant market share in the disposable glove industry. BarrierSafe will now supply the non-discretionary protection needs of long-standing customers in the food service, dental, laboratory, emergency medical services, healthcare, automotive, and industrial markets," said American Capital Managing Director Frank Do.
Founded in 1987, Reno, NV-headquartered Microflex is a developer and marketer of branded natural rubber latex and synthetic disposable gloves sold to the dental, laboratory, emergency medical services, healthcare, automotive, industrial and food service markets. The company has over 20 product lines and several patents issued and pending. Microflex's customers include over 16,000 end-users and an extensive network of over 500 distributors.
FoodHandler, founded in 1969 and based in Westbury, NY, is a provider of safe food handling solutions to the food service industry. The company offers high quality disposable gloves, bags, aprons, bibs and headwear, all marketed under three different brands: FoodHandler, MedHandler and JobSelect, to over 600 distributors. FoodHandler is currently the only glove and bags supplier certified by NSF International, an independent public health and safety certification and standard setting organization that independently certifies product quality and efficacy.
"American Capital demonstrated a unique ability to be patient and flexible throughout this process in providing the necessary financing that was crucial to the completion of this merger," said Riverside General Partner David Belluck. "With their support, the combined company is in a strong position to grow and meet the demands of its various end markets through increased research and development, geographic and market expansion, cross-selling opportunities, and add-on acquisitions."
"This is our first time working with American Capital and we were impressed with their firm dedication to working on this investment," said StoneCreek Managing Director Drew Adams. "American Capital's experience in the market and history of mezzanine financing enabled them to quickly address and correct issues that arose throughout the process."
As of August 31, 2004, American Capital shareholders have enjoyed a total return of 281% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $524 million in dividends and paid or declared $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3.6 billion. American Capital is an investor in and sponsor of 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 and Senior Vice President, Business Development, at (800) 248-9340, or visit our website.
Founded in 1989, Riverside Partners is a Boston based private equity firm that has invested in over 30 companies across the U.S., typically with $10 million to $100 million in revenues. Riverside focuses on investing in founder and family owned businesses, particularly suppliers to the health care/ life sciences industries and electronics related industries. Riverside currently manages Riverside Fund II, L.P.
Founded in 1992, StoneCreek Capital is a private equity firm based in Irvine, California that sponsors leveraged middle market acquisitions. StoneCreek has sponsored over 20 acquisitions, including platform investments and add on acquisitions totaling over $500 million in value. StoneCreek targets U.S. based transactions ranging from $20 million to $100 million.
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.
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This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.
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