Bethesda, MD - November 27, 2001 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $30 million of senior subordinated notes in Plastech Engineered Products Inc., a leading designer and manufacturer of interior and exterior automotive components and systems supplying original equipment manufacturers and tier one suppliers in the automotive industry. Plastech is one of the largest minority owned suppliers of automotive components in the United States. American Capital's investment funds, in part, a component sourcing agreement with Johnson Controls (NYSE: JCI), a manufacturer of automotive systems. The agreement should more than double Plastech's annual revenues.
"In the current economic environment, American Capital's access to capital is critical to fueling the growth of strong middle market companies like Plastech," said American Capital COO Ira Wagner. "We are investing in a leading company in its niche with experienced managers who have a demonstrated track record of growth and profitability due to their efficient and well-run operations."
American Capital has invested over $350 million in middle market companies in the last twelve months.
"Plastech has combined low-cost production capabilities with long term customer partnerships to capitalize on OEM trends to increase outsourcing and the use of plastic parts in vehicles to meet federal and state gas mileage standards," said Roland Cline, American Capital Senior Vice President and Managing Director. "Plastech is a rising star within a heavily fragmented industry, benefiting from a pervasive cost-cutting culture aimed at productivity improvements that support the highest quality products."
Dearborn, MI based Plastechs operates 14 facilities throughout the Midwest, employs more than 2,500, and has experienced continuing growth in sales over the past two years.
"As a result of American Capital's investment, we will be able to capitalize on excellent growth opportunities," said Plastech President and CEO Julie Brown. "This is especially compelling considering that many of our competitors are struggling through the automotive downturn."
Click here to learn more about Plastech and its high-quality products.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1 billion. 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. American Capital has paid over $7.00 per share in dividends since going public in 1997.
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.
