BETHESDA, Md., July 19 /PRNewswire/ -- American Capital Strategies, Ltd. (Nasdaq:ACAS) today announced a $14.25 million senior debt, subordinated debt and preferred stock investment in MBT International, a leading international distributor of musical products and accessories headquartered in Charleston, South Carolina. MBT is the nation's second largest distributor of musical accessories and the third largest distributor of instruments and accessories combined. Menke Equity Partners, a wholly-owned subsidiary of Menke & Associates, sourced the transaction and was an equity investor.
Eddie Toporek, who founded MBT in 1979, attributes most of the company's success to an exceptional workforce and a key business philosophy: the customer comes first. Over the years, MBT has expanded its product offerings to better serve the needs of its diversified customer base of retail dealers by adding a range of proprietary products like Hondo® & J.B. Player® guitars, and securing exclusive U.S. distribution rights for other branded products such as Hardcase® instrument cases, Zoom® audio products and Groove Juice cleaning products. Today, the company sources and sells more than 18,000 different products both domestically and internationally. Nearly 50% of total revenues come from the company's proprietary products or those it sells through exclusive distribution rights.
American Capital Principal John Thornton commented, "One of American Capital's attractions to MBT was its existing strong financial position. Also, MBT's expansion over the years has been paralleled by steady growth in the depth and breadth of its product offerings. We look forward to combining our capital and Internet resources with the skill and industry expertise of this management team to make product line acquisitions, refine the company's business-to-business e-commerce capability and pursue other opportunities which will enhance revenues and earnings of both MBT and its dealer network. We're excited about the future."
Eddie Toporek, President and CEO stated, "This partnership with American Capital and Menke comes at a great time. Music industry demand has increased at a 6.5% average annual rate since 1989 without a single down year, and a second baby boom is just beginning to hit the school market. Menke and American Capital offered us the long-term strong financial partnership and additional strength we needed to capitalize on the market opportunities and rise to the next level."
Adam Blumenthal, American Capital Chief Operating Officer noted, "This is our first transaction of the third quarter after the conclusion of a very strong second quarter. American Capital continues to add quality companies led by dynamic and innovative management teams to further diversify its existing portfolio companies."
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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.
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 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.
