BETHESDA, Md., May 6 -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that one of its growing portfolio companies, Confluence Holdings, has acquired a manufacturer of whitewater kayaks for an undisclosed price. Confluence Holdings manufactures touring and recreational kayaks and canoes. American Capital increased its investment in Confluence by $3.1 million to support this acquisition and for other corporate purposes.
American Capital Principal John Freal commented, ``The acquisition genuinely complements the existing business. It fills an opening in the Confluence product line and allows the Company to meet the full range of its customers' needs. We expect this transaction to immediately enhance earnings.''
Malon Wilkus, President and CEO of American Capital, added, "This financing represents our commitment as long-term partners with our portfolio companies by providing the growth financing they need to execute their business plans. We expect many of our portfolio companies to return to us for their ongoing financing needs. American Capital is pleased to be a partner with Confluence and their three growing subsidiaries."
For more information about American Capital's portfolio click here.
American Capital is a buyout and specialty finance company with capital resources exceeding $250 million. American Capital invests $3 to $20 million in the form of senior debt, subordinated debt and equity to middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings. Companies interested in learning more about American Capital and its unique and flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at 781-862-4447 or visit its Web site at www.American-Capital.com or its shareholder site at www.ACAS1.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings and national economic trends.
