Bethesda, MD - November 3, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $54 million in the buyout of Flexi-Mat Corporation, the leading producer, importer and marketer of pet beds. American Capital's investment takes the form of a revolving credit facility, senior term loans, senior and junior subordinated debt and preferred and common equity. Management also invested significantly in the transaction.
"We are excited to be investing in Flexi-Mat, our fourth buyout of the year and 25th announced investment this year," said American Capital COO Ira Wagner. ""With a dedicated marketing team, seven offices, seventeen principals, more than seventy professionals, and the ability to both lead American Capital sponsored buyouts and provide financing for private equity buyouts and direct investments, American Capital has been able to attract a tremendous flow of investment opportunities, as demonstrated by our volume year-to-date."
American Capital has invested more than $850 million in middle market companies in the past twelve months and more than $700 million this year.
For more information about American Capital's portfolio click here.
"With this investment, American Capital is backing the growth of a market leader that has excelled in its industry through its dedication to product innovation, product breadth, including patented products, the leadership of an experienced management team and low cost operations, including overseas outsourcing," said American Capital Managing Director Tom Gregory. "In addition, Flexi-Mat has established strong, long lasting relationships with leading retailers by providing significant value-added services such as stylish, updated product design, inventory and logistics management and a high level of customer service. A market leader with great potential, Flexi-Mat is in an ideal position to meet the rapidly growing market demand for pet beds as pet ownership and spending continues to increase in the U.S."
Founded in 1948, Chicago, IL-headquartered Flexi-Mat markets a diverse product line of pet beds, including indoor and outdoor beds, orthopedic beds and heated beds. The company's products include well-recognized beds such as the Orthonapper®, Catnapper®, Mysterious Kitty Kuddler®, Purr Pad® and Dognapper®. Customers include major retailers, mass merchants, pet superstores and catalog and internet retailers. Pictured at left is the patented Bolster Bed, a comfortable and relaxing bed that ensures man's best friend gets his well-deserved rest.
"We are confident that our new investment partnership with American Capital strengthens Flexi-Mat's ability to increase its market share through continuous product innovation and expansion of our customer base by adding new customers and increasing service to existing ones," said Flexi-Mat President James Elesh.
For more information about Flexi-Mat's line of comfortable pet beds click here.
As of October 31, 2003, American Capital shareholders have enjoyed a total return of 207% since the Company's IPO -- an annualized return of 20%, 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.
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.
