Bethesda, MD - April 1, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $36 million in the buyout of PaR Systems Inc. PaR is a leader in the design, assembly, installation and service of large-scale, high-precision robotic systems in a variety of industries, including aerospace, marine, high-hazard remediation, commercial nuclear power, research and general manufacturing. American Capital is acquiring PaR from Mass Mutual Insurance Company and Edson Partners, and is funding a revolving credit facility, senior term loan, senior and junior subordinated notes with warrants and common equity. PaR management is reinvesting much of their existing equity in the company.
"American Capital closed out the first quarter with three new buyouts and one new mezzanine investment totaling approximately $100 million," said Chairman, President and CEO Malon Wilkus. "For middle market private equity funds, capital raising and the transaction environment remain difficult. In spite of this, American Capital has raised $360 million in the past five quarters in the public equity and debt markets, with $150 million this month in an on-balance sheet securitization. Our lower cost of capital, one-stop-shop capability and ability to close are critical to funding strong, innovative middle market companies in need of investment capital."
American Capital has invested approximately $450 million in middle market companies in the last twelve months, with approximately $240 million funding buyout transactions.
For more information about American Capital's portfolio click here.
"American Capital is backing an excellent management team with experience running substantially larger global businesses," said Principal David Ehrenfest Steinglass. "They are prepared to use that experience and grow PaR by leveraging the company's leading market shares; reputation for quality and reliability; brand equity; and highly focused niche capabilities: an extensive installed base, proprietary technologies and world class engineering and assembly processes."
Located outside of St. Paul, Minn., PaR employs approximately 150 people, has more than 40 years experience and over 1,000 system installations worldwide. It has seen sales grow significantly in the past year.
"American Capital's investment provides PaR with a solid foundation for growth," said PaR CEO Mark Wrightsman. "We will continue to serve our existing diverse customer base while continuing to develop unique technologies that meet the needs of a variety of end users."
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. The Company has paid and declared $8.35 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.
