Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that an acquisition company controlled by American Capital has acquired Iowa Mold Tooling Co., Inc. from Intermet Corporation (Nasdaq:INMT). IMT is a leading manufacturer of service vehicles, material handling systems and specialty cranes serving the tire, mining, construction, material handling, equipment dealer, railroad and utility markets throughout the world. American Capital provided $32,200,000 in junior capital, consisting of senior subordinated debt with warrants, junior subordinated debt with warrants and common equity. Other equity capital was provided by members of the senior management team of IMT and from Mobile Tool International, an American Capital portfolio company. GMAC Business Credit provided a $31,000,000 senior credit facility. American Capital will have majority control of IMT.
"During the third quarter, our portfolio company o2wireless Solutions completed its well received public offering, and we made $70 million in new investments. Now the IMT transaction represents a great start to the fourth quarter," said Adam Blumenthal, President & COO of American Capital. "IMT builds on the core strengths of our investment strategy: it is a value-added manufacturer serving heavy industry; it is our fourth buyout this year, and it is our third $30 million transaction of the year. Like our other manufacturing investments, IMT is an innovator with a strong market position. It is a strong platform company and we expect to see significant industry growth and consolidation opportunities."
"IMT has an impressive record of introducing new products, which are sold through a strong dealer network. They have an industry-leading reputation for quality and reliability," said American Capital Senior Investment Officer Ira Wagner. "IMT's proven management team will continue moving the company forward as they have been doing very successfully in recent years. American Capital's investment capitalizes the company so it can withstand any economic turbulence over the next several years."
"American Capital's investment gives IMT a sound foundation for continued growth and development," said IMT President and CEO Richard Long. "It will benefit our varied customers and our hard working, dedicated employees."
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.
GMAC Business Credit is a leading national provider of senior loans to middle market companies such as IMT. It offers a full line of financing products, including cash-flow and asset-based loans. GMAC Business Credit is a preferred provider on Capital.com, a business finance portal that is an American Capital portfolio company.
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.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.
