BETHESDA, Md., Aug. 3 /PRNewswire/ -- American Capital (Nasdaq:ACAS) announced today that they purchased $7.5 million of Electrolux subordinated debt on July 31, 1998. Electrolux is a leading manufacturer and direct marketer of high-end vacuums and floor cleaners sold throughout the United States and Canada.
Electrolux was acquired on April 30, 1998 from the Sara Lee Corp. (NYSE:SLE) by the Dallas-based buyout firm, Engles Urso Follmer (EUF). Gregg Engles, Chairman of EUF, was the driving force behind Suiza Foods (NYSE:SZA), a company he built from an $18 million ice company into one with a market capitalization in excess of $1.9 billion. American Capital purchased the note from First Dominion Capital, which acted as agent for EUF in raising the acquisition financing and made an equity investment as well.
Electrolux is a well-known brand name, having entered the U.S. market in 1924. The first Electrolux vacuum was a cylinder type machine that was radically different from the upright sweepers available at the time. Electrolux emerged as an industry sales leader based on its models, value and the strength of its direct distribution system. The company still supplies parts for forty-year-old vacuums and reports that there are units from the 1930's still in use today.
John Freal, American Capital Principal, said, ``Electrolux is a company with a solid foundation, and we expect it to thrive under the Engles Urso Follmer leadership. The Company has earned a reputation for high quality, high performance products, and EUF is supported in its efforts by both a talented management team and an aggressive sales force. American Capital is excited about the opportunity to back a company whose products are considered a household name to a large portion of the American population.''
Malon Wilkus, President and CEO commented, ``This is American Capital's first transaction with First Dominion and Engles Urso Follmer. We are pleased to have partnered with them on this and look forward to working with them on future transactions.''
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