Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS), announced today that Electrolux LLC, one of its portfolio companies, has signed an agreement to sell the trademark and company name "Electrolux" in North America to the Electrolux Group of Sweden for $50 million. American Capital purchased $7.5 million of Electrolux LLC subordinated debt with associated warrants to purchase 2.5% of its member interests in an August, 1998 transaction in support of Electrolux LLC's acquisition by management and Engles Urso Follmer, the Dallas-based buyout firm. Electrolux LLC is a manufacturer and a direct-sales company for floor-care products and other home products.
"This transaction, when completed, will serve as the basis for a recapitalization of our portfolio company, substantially expanding its capital resources," said American Capital Principal and Senior Investment Officer John Freal. "It is expected to serve as a foundation for expansion into other opportunities that are complementary to the base business. We are pleased to be working with partners like the Electrolux LLC management team and Engels Urso Follmer and see this event as being a positive development."
Electrolux Group, which will regain full and worldwide control of its company name, has not had any interest in the use of the Electrolux name in the United States since 1968. Electrolux Group is a well-known producer of products for kitchen and cleaning and owns several US appliance brands. A closing is planned upon receipt of required consents.
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.
This press release is neither an offer to sell nor a solicitation of an offer to buy shares. Such an offer is made by prospectus only.
