Bethesda, MD - October 27, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $15 million in MP TotalCare Inc., a leading national provider of respiratory medications and diabetic supplies to patients across the United States. American Capital's investment takes the form of senior debt and supports MP TotalCare's acquisition of Medical Holdings Inc., a leading national supplier of direct to consumer urological products. GMAC-RFC Health Capital is also providing senior term loans as well as a revolving credit facility. MP TotalCare is a portfolio company of Charterhouse Group.
"We are pleased to be working with Charterhouse Group for the first time, supporting their platform company MP TotalCare in its acquisition of Medical Holdings," said American Capital COO Ira Wagner. "We share Charterhouse's view that the healthcare services sector will continue to provide attractive investment opportunities."
American Capital has invested more than $800 million in the past twelve months and more than $650 million this year.
For more information about American Capital's portfolio click here.
"The combined companies will hold leading positions in the diabetes, urological and respiratory medication supply markets in the U.S. MP TotalCare provides a number of valuable services including home delivery of products, insurance reimbursement, patient education and prescription compliance monitoring," said American Capital Principal Brian Graff. "In addition, American Capital is backing a strong senior management team with the specialized experience necessary to grow the company."
Founded in 1990 and headquartered in Tampa, FL, MP TotalCare's products are primarily used in the treatment of diabetes and chronic obstructive pulmonary disease. The company delivers products through the mail and provides customer-focused services to over 100,000 patients. MP TotalCare also manages pharmacies for third parties. Medical Holdings serves over 9,000 customers, supplying urological and other medical products to patients across the United States.
"American Capital understands long-term value creation. They worked quickly to understand our investment thesis and strategy, enabling us to move forward without delay," said Charterhouse Partner Jay Gates.
Click here for more information about MP TotalCare's innovative delivery of health care products.
As of September 30, 2003, American Capital shareholders have enjoyed a total return of 183% since the Company's IPO -- an annualized return of 19%, assuming reinvestment of dividends. American Capital has paid or declared a total of $12.37 per share in dividends since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $2 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 should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
Charterhouse Group is a private equity firm with three decades of experience in building leading middle-market companies. Established in 1973, Charterhouse currently manages in excess of $1 billion in equity through several limited partnerships. Since its inception, Charterhouse has completed investments in over 80 platform companies with a focus in the business services, healthcare services, telecommunications, consumer products and industrial sectors. To learn more about Charterhouse, please visit their website at www.charterhousegroup.com.
Charterhouse portfolio companies include MP TotalCare, Inc., Cross Country Staffing Inc., a leading provider of healthcare staffing services, and AAT Communications Corp., the largest private provider of tower sites to the wireless communications industry.
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.
