Bethesda, MD - September 28, 2001 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $35 million in ThreeSixty Sourcing Hong Kong Limited, a leading global sourcing firm that manages the Asian sourcing for primarily U.S.-based consumer products companies. American Capital will fund a $15 million senior credit bridge facility and invest $20 million in senior subordinated debt with warrants. The equity sponsor is Brentwood Associates, a Los Angeles based private equity firm. The investment will finance the spin-off of ThreeSixty Sourcing into a stand-alone company.
"In addition to providing $20 million of junior capital, American Capital was able to step in to the shoes of senior lenders and provide the necessary senior credit to speed this transaction to completion," said Chairman, President and CEO Malon Wilkus. "We just raised $50 million in public equity, expanding our capital resources to nearly $1 billion, putting us in an excellent position to continue to work with private equity sponsors to support companies with strong market niches."
American Capital has invested over $340 million in middle-market companies in the last twelve months, $90 million this quarter.
For more information about American Capital's portfolio click here.
"In a difficult environment, ThreeSixty's capability to reduce costs for both existing and prospective customers should prove beneficial," said American Capital COO Ira Wagner. "In addition, demand for most of the products sourced by ThreeSixty should hold up given their price points and distribution channels."
ThreeSixty Sourcing handles over $300 million of goods for leading companies in such categories as sporting goods, luggage, books and housewares. This broad product range includes quality brands that are familiar to all Americans.
"American Capital is backing one of the top players in a highly fragmented industry. ThreeSixty is run by a strong management team executing a business strategy with a tremendous opportunity for growth," said Jeri J. Harman, Principal. "Outsourcing of consumer products is a large and fast-growing market. ThreeSixty Sourcing's services will add value to consumer products companies whether or not they are currently sourcing in Asia. All customers benefit from ThreeSixty Sourcing's purchasing volume, extensive manufacturer relationships and distinctive competitive bidding process that achieves the lowest cost for its customers while ensuring high quality standards."
"American Capital's investment in ThreeSixty Sourcing allows us to take our company to the next level, building on our experience and solid customer base," said ThreeSixty Sourcing CEO Peter Waller. "Our proven track record of multiplying the value of our customers' businesses is a great springboard for our future growth."
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.
