Bethesda, MD -- American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $25.5 million to fund the buyout of Texstars Inc. from BBA US Holdings, Inc., a subsidiary of BBA Group plc (LSE: BBA). American Capital's investment takes the form of senior debt, senior subordinated debt, and common equity. Texstars management has also invested equity.
Texas-based Texstars is the leading supplier of canopies for the F-16 fighter aircraft, the most widely used U.S. fighter aircraft. The canopy is the clear one-piece windshield that wraps around the pilot, and Texstars is a leading supplier of polycarbonate canopies for many military aircraft applications. In addition, Texstars manufactures other components for both military and non-miltary aircraft, and for mass transit applications.
"In a difficult financing environment, with senior lenders pulling back, we are able to provide one-stop-shop capability to implement buyouts that might otherwise not close," said American Capital COO Ira J. Wagner. "Texstars is a world-class manufacturer of highly-engineered niche products, and we can assist company management as it works to seize new opportunities as a stand alone company."
"Texstars' strong management team is in an excellent position to leverage the company's competitive advantages: the ability to conform to exacting military specifications, preferential relationships with other leading manufacturers, patented technologies and proprietary processes," said American Capital Principal, David Ehrenfest Steinglass. "Barriers to entry are high, and will help the company maintain its strong market position in its military aircraft products and continue to grow in commercial product applications."
"We are excited about working with American Capital as Texstars continues to grow and look for additional market opportunities. As an independent company with American Capital's financial backing, Texstars can maximize its full potential with new products and further market penetration," said David Rollings, Texstars CEO.
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. 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.
