Bethesda, MD - August 1, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $32.8 million to recapitalize Halex Corporation, the leading manufacturer and distributor of carpet tackstrips, plywood underlayment and other flooring installation supplies. American Capital's investment takes the form of senior subordinated notes and preferred stock. Antares Capital Corporation provided a senior term loan and revolving credit facility and also purchased preferred stock. Halex's founders will own a significant interest in the recapitalized company and will continue in their current roles.
"American Capital is backing a dominant niche manufacturer with a global reach," said American Capital COO Ira Wagner. "This reflects our ability to consistently locate excellent middle market companies, structure an appropriate transaction and get to closing."
American Capital has invested more than $500 million in middle market companies in the last twelve months.
Click here for more information about American Capital's portfolio.
"We are backing visionary founders in Jon Hall and Craig Silvers and a solid management team, and are excited as well to partner with Antares Capital," said American Capital Principal Frank Do. "Halex has created a significant market position through its competitive advantages in sourcing, manufacturing and distribution while achieving a successful financial track record. It has leveraged its proprietary machinery, systematized innovation and focused on superior sales, customer service and product reliability to establish and maintain an enduring franchise."
Halex, founded to manufacture carpet tack strip in 1990, now produces and sources a range of carpet installation supplies, purchasing and selling through global networks. The company employs over 150 people in its Pomona, CA facility and has seen sales steadily and significantly increase.
For more information about Halex and how it meets the needs of its diversified clients click here.
"American Capital and Antares Capital are helping Halex move into the future," said Halex CEO Jon Hall. "We're very happy to have them as investment partners as we build upon our leadership in efficiently producing and distributing premium flooring products."
"Halex is now in a better position to refine its proprietary production machinery to suit the demands of a global marketplace," said President Craig Silvers. "We are confident that the partnership strengthens our company and our ability to pursue new opportunities in existing and new markets. Going forward, Halex can continue to work faster, better and cheaper."
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 private equity sponsored buyouts; and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations. The Company has paid $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.
