Bethesda, MD - June 4, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $6 million in its portfolio company Warner Power LLC to finance the acquisition of Daykin Electric Corp. Warner is a producer of highly customized industrial power conversion supplies and electronic ballasts. Daykin designs, manufactures and markets transformers, transformer disconnects and power supplies used primarily in industrial control applications for auto industry machine tools. American Capital's investment takes the form of a senior term loan and a junior subordinated note with warrants.
"Warner's acquisition of Daykin is an example of American Capital's role as an equity sponsor assisting in the growth of a portfolio company," said COO Ira Wagner. "These companies will fit well together and we are pleased to support Warner in this strategic acquisition."
American Capital has invested approximately $500 million in middle market companies in the last twelve months.
Click here for more information about American Capital's portfolio.
"This acquisition provides opportunities for significant synergies for Warner and Daykin," said American Capital Vice President Myung Yi. "Warner can immediately take advantage of Daykin's relationships in the auto industry, smaller transformer manufacturing capability, and sheet metal and powder coating capabilities. Daykin can increase its sales of large transformers, launch the sales of transformer disconnects to broader markets, and take advantage of Warner's engineering, production and financial capabilities."
Founded in 1968, Livonia, MI-based Daykin is now a certified provider for Ford, General Motors and Daimler Chrysler. The combined companies will have 150 employees.
For more information about Daykin and the synergies it brings to Warner Power, click here.
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 $8.98 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.
