Bethesda, MD -- American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $23 million in its portfolio company Aeriform Corporation to finance Aeriform's acquisition of a significant cylinder gas distribution operation from Air Liquide America. Employee-owned Aeriform is one of the country's largest independent distributors of specialty and industrial cylinder gases. With its strategic acquisition of 22 cylinder gas operations from Air Liquide America, Aeriform nearly doubles its size and strengthens its position as a market leader.
American Capital's investment takes the form of a senior term loan and senior and junior subordinated debt with warrants. Aeriform senior management and directors will also invest in this transaction and the Employee Stock Ownership Plan, or ESOP, will continue its common stock ownership.
"American Capital's add-on investment with Aeriform is a great example of our role as an equity sponsor helping one of our portfolio companies grow through strategic acquisitions," said American Capital Chairman, President and CEO Malon Wilkus. "Once again, our flexible capital has allowed us to be an active equity sponsor and close a transaction in a difficult capital environment, helping an ESOP portfolio company realize its potential."
American Capital has announced new investments in the second quarter totaling more than $80 million, making it a record second quarter.
"Aeriform's acquisitions will position it as a leading industrial gas distributor in Texas, Louisiana and Oklahoma," said American Capital Senior Vice President Roland Cline. "This region is projected to account for a significant share of industrial gas demand in the near future. Aeriform's increased size and influence in the region put its seasoned management in an excellent position to continue to capitalize on growth opportunities through strategic acquisitions."
With the addition of its new operations, Aeriform now has over 300 employees and annual revenues in excess of $75 million.
"American Capital's ongoing partnership with Aeriform enhances our ability to serve our existing customers, reach out to new ones, and strengthen our market position," said Michael Logan, Aeriform CEO and President.
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.
