BETHESDA, Md., June 30 /PRNewswire/ -- American Capital Strategies, Ltd. (Nasdaq:ACAS) today announced the investment of $7.5 million of senior subordinated debt at Aeriform Corporation. Aeriform, an employee-owned firm headquartered in Houston, is the largest independent distributor of packaged industrial and specialty gases in Texas. Led by a superior management team, Aeriform has generated strong earnings and more than tripled its revenues since its ESOP buyout in 1990.
Founded in 1946, Aeriform offers the widest range of specialty gas products in the Texas Gulf Coast in a variety of packaging options, as well as welding equipment and supplies. Operating out of a network of 16 retail locations and several manufacturing facilities, the company services a broad and diversified customer base of more than 5,000 active accounts. Supported by superior service and the company's leading market position, management has negotiated contracts which yield recurring revenue streams from many key customers in the chemical, petrochemical, fabrication and other Texas industries.
American Capital Principal Roland Cline said, ``Aeriform's management team has done an excellent job of building this company during the past nine years through both organic growth and acquisitions, and has achieved strong earnings by focusing on higher-margin, value-added products and services. We look forward to supporting Aeriform's management team as they continue to implement this successful growth strategy for years to come.''
Aeriform President and CEO Michael Logan commented, ``The gas industry is highly fragmented and continues to consolidate. The winners will be the companies that can capitalize on this change in ways that efficiently and profitably benefit the customers. American Capital offered the financial partnership and long-term capital Aeriform needs to accomplish this in our growing Texas market. We look forward to pursuing a variety of investment opportunities with American Capital.''
COO of American Capital Adam Blumenthal stated, ``American Capital has a specialty in investing in employee-owned companies. We are looking forward to a successful partnership with Aeriform and its employees, enabling American Capital and its shareholders to participate in this growing industry.''
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American Capital is a buyout and specialty finance company with capital resources exceeding $275 million. American Capital invests in senior debt, subordinated debt and equity in 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 (800) 248-9340 or visit its Web site at www.American-Capital.com or its shareholder site at www.ACASOnline.com.
