Bethesda, MD -- American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $24.5 million to fund the buyout of Logex Corporation, the nation's largest contract carrier of industrial gases. The investment takes the form of senior and junior subordinated debt with warrants, preferred stock and common stock. Logex management participated in the buyout investing in the preferred stock and the common stock.
"Logex is American Capital's fifth buyout transaction this year," said Ira Wagner, American Capital COO. "We continue to see opportunities to invest in robust middle market companies with experienced management, niche expertise, extensive industry relationships and stable revenues. In addition, Logex is an excellent way to build on our existing strength in the industrial gas industry."
To date, American Capital new investments this year total approximately $170 million.
For more information about American Capital's portfolio click here.
"Logex accounts for approximately three quarters of all transportation contract services outsourced to third parties within the US industrial gas market," said American Capital Principal John Thornton. "The company is poised to capitalize on the gas industry's steady growth and its trend towards transportation outsourcing through highly specialized carriers. Logex's strong management can build on the company's broad geographic coverage, logistics capabilities, comprehensive training and safety programs and administrative support." Orange, CA based Logex's revenues have increased by approximately 17% annually since 1998.
"American Capital's investment in Logex allows us to move forward and concentrate on the potential in our dynamic marketplace, better serving our customers," said Gary Mooney, Logex Chairman, President and CEO.
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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.
