Bethesda, MD - November 2, 2001 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $26 million in the buyout of European Touch Ltd II, a premier designer, manufacturer and marketer of high quality pedicure appliances and complementary salon furnishings headquartered in Butler, Wis. American Capital is the equity sponsor of the transaction and is funding a senior term loan, senior and junior subordinated notes and common equity, with American Capital having 100% ownership. ACAS is acquiring European Touch from Styling Technology Corporation.
"This transaction - our fifth buyout this year - is a prime example of American Capital's buyout expertise and our ability to find an appropriate company to purchase, negotiate the transaction, and underwrite and fund the entire capital structure of the company," said COO Ira Wagner. "Current market conditions have led to valuations highly favorable to investors, and we look forward to similar transactions in the future."
American Capital has invested over $370 million in middle market companies in the past twelve months.
"European Touch is the top brand in salon appliances, with an unmatched reputation for quality and service," said Gordon O'Brien, American Capital Managing Director. "Their experienced, innovative and highly respected management has established the dominant brand name and market share in the pedicure spa industry. The company is capitalizing on the remarkable growth in the spa industry tied to long term demographic patterns and household consumption trends resistant to economic downturns."
"American Capital's investment allows us to devote resources to upgrading our products, developing new ones, and promoting them in an expanding marketplace," said European Touch CEO Connie Meyer-Weissling.
Click here for more information about European Touch and its leading position in the pedicure spa industry.
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.
