Bethesda, MD - November 11, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $5 million in Phillips & Temro Holdings LLC and its wholly owned subsidiaries, a leading manufacturer of highly engineered cold weather starting and comfort products for the automotive and heavy duty truck OEM market and aftermarket. American Capital's investment takes the form of a senior secured subordinated note and is supporting the acquisition of Phillips & Temro from the Budd Company by TMB Industries, a private equity firm based in Chicago with a strong track record of investing in middle market industrial companies. LaSalle Bank N.A. provided senior term loans and a revolving credit facility. Chilmark Partners is jointly funding the equity.
"This investment in support of TMB Industries acquisition of Phillips & Temro is our 10th mezzanine transaction this year with other private equity groups," said American Capital COO Ira Wagner. "Phillips and Temro is a leader in their niche product lines, and through the leadership of TMB we expect that Phillips and Temro will continue its progress towards becoming a global leader through product innovation and continuous improvement to its operations."
American Capital has invested more than $550 million in the past twelve months and approximately $450 million this year.
Click here for more information about American Capital's portfolio.
"American Capital is pleased to invest in Phillips & Temro as it continues to supply the needs of automotive and heavy truck manufacturers with its quality products and reliable service," said American Capital Managing Director Tom Gregory. "With heightened pressure from regulators enforcing anti-idling laws, tighter emissions controls and more stringent fuel economy standards, Phillips & Temro is prepared to meet the demands of the market with its high quality cold start and emissions control products."
Phillips & Temro has secured its position as the leading North American supplier and second largest global supplier of cold weather starting and comfort products to the automotive and heavy duty truck OEM market and aftermarket. The company's four manufacturing facilities in Minnesota and Manitoba, Canada have enabled Phillips & Temro to serve notable long-time, top automotive and heavy duty truck customers such as the Ford Motor Company, Cummins Engine Company, General Motors, Daimler-Chrysler, Volvo and John Deere.
"American Capital and LaSalle Bank are excellent investment and financing partners as, under new ownership, PTI is poised to embrace strategic market opportunities and capitalize on its leading position and blue-chip customer base," said Kenneth Tallering, TMB Managing Director.
Click here for more information about Phillips & Temro and its ability to meet the constantly changing needs of its customers.
You Can't Restate a Dividend!
American Capital has declared a $.67 per share dividend to be paid on December 31, 2002 to record holders as of December 12, 2002. This dividend is an 18% increase over the fourth quarter 2001 regular dividend of $0.57 per share. American Capital has paid or declared $10.31 in dividends since its August 1997 IPO at $15.00 per share.
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.
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.
