Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that it has funded a buyout by Fulton Bellows & Components, Inc. of Knoxville, TN, with a total investment of $24.5 million. Fulton Bellows is a new corporation that purchased several operating divisions and product lines of Robertshaw Controls Company, a subsidiary of Invensys, PLC, a publicly traded British concern. The new company will have the right to use the Robertshaw name, an established brand in the bellows industry, for three years.
American Capital's investment will take the form of $11 million in senior debt, $8 million in senior subordinated debt, $3 million in preferred stock, and a $2.5 million revolving line of credit. J. Randal Greaves, who led the transaction and will serve as the company's full time chairman, provided the common equity.
"American Capital is backing a proven buyout executive and investing in a recognized leader in control devices," said Adam Blumenthal, American Capital President and Chief Operating Officer. "Fulton represents an investment in a company with significant market share."
The metal bellows manufactured by Fulton have varied uses in many consumer and industrial products. They are used to regulate pressure and temperature in automobile and aerospace engines, home heating systems, and medical equipment, and as seals for industrial valves and electrical equipment. The new company will consist of a bellows division, an automotive products line producing products having temperature-regulating applications similar to the bellows, and a metal stamping and machining operation. Fulton will employ over 350 people post-closing. Fulton's predecessors include the original company founded in 1904 by the inventor of the bellows technology.
"Fulton's entrepreneurial management team delivers a solid product to a diversified industrial and consumer customer base," said John Freal, the American Capital Principal who structured the transaction. "The company's technical superiority and widespread brand recognition promises a bright future for its management and employees. Randy Greaves brings substantial LBO experience to the company, and the existing management team is staying in place. They will be able to expand the business and deliver customized solutions to their customers without being hindered by a disinterested offshore parent corporation."
"American Capital was able to provide the capital we needed in an extremely compressed time period, enabling us to make the buyout work," said Greaves. "Their flexibility and responsiveness were critical in completing a complex, international transaction. We're looking forward to a long and productive working relationship with American Capital as we grow this business."
American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
Capital.com, Inc., a portfolio company of American Capital Strategies, Ltd. (Nasdaq:ACAS), is a business finance portal where premier financing sources compete to provide receivable and inventory financing, machinery and equipment loans and leasing, real estate and construction financing, subordinated debt and equity financing for growth, acquisitions, management buyouts, liquidity, recapitalizations, ESOP transactions and SBA loans. Companies in need of financing or information about financial services should contact Capital.com at info@Capital.com, or call Harry Kelly, vice president, at (646) 935-1100.
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.
|
 |
