Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that it has invested $9 million of subordinated debt to fund the acquisition of Columbian Steel Tank Company and Engineered Stored Products by CST Industries, Inc. Equity financing was provided by George K. Baum Merchant Banc and Don Wagner, CEO of CST. The acquired businesses manufacture and install storage tanks for municipal, industrial and agricultural markets.
"This first investment of the new year reflects American Capital's interest in niche manufacturing," said Adam Blumenthal, President and COO. "While conventional debt and equity markets have ignored manufacturing companies with strong market shares, good assets and real cash flow, they are our bread and butter. We anticipate similar opportunities throughout the year."
"American Capital is backing a proven management team of industry veterans from the bolted steel tank market," said American Capital Principal Mark Schindel. "Both companies have brand names that are respected around the world, and the combined businesses will benefit greatly from synergies and economies of scale. "
"American Capital's investment allows us combine two of the best names in the storage tank market," said Don Wagner, CEO of CST. "New and existing customers will benefit from a wider range of products and a more versatile manufacturer and erector of storage structures."
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.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.
