Bethesda, MD - November 4, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $35 million in the buyout of Jones Stephens Corp., a leading designer, brander and distributor of specialty plumbing components. American Capital's investment takes the form of subordinated debt and preferred and common equity. Union Bank of California N.A. and Antares Capital Corporation are providing senior debt financing. Jones Stephens' founders will continue to have a significant ownership stake in the enterprise.
"This is American Capital's fifth buyout of the year and 26th announced transaction," said COO Ira Wagner. "We are pleased to be in business with the Jones Stephens management team, and will be working with them to continue building on their successful track record based on product innovation, global sourcing and customer service."
American Capital has invested more than $850 million in the past twelve months and more than $700 million this year.
For more information about American Capital's portfolio click here.
"Jones Stephens maintains the largest plumbing product and category offering in the industry, supported by strong product development and a culture of continuous improvement and unrelenting customer service," said American Capital Principal Frank Do. "The company's strong management team consists of industry veterans, most of whom have been with Jones Stephens since founding. Their demonstrated ability to manage growth is shown by the company's consistently strong financial performance over the past 10 years. They have been leaders in developing extensive Asian sourcing for a sizable percentage of their product line, making them the lowest cost distributor in their industry."
Founded in 1992, Moody, AL-based Jones Stephens has long standing relationships with leading plumbing wholesalers, such as Winnelson, general construction wholesalers, such as Hughes, and dominant big box retailers such as Lowes and Home Depot.
"American Capital is the right partner for Jones Stephens' continued growth," said co-founder and co-CEO Butch Jones. "With my co-founder and co-CEO, Joey Stephens, and President and COO Byron Shaw, I am confident that we face the future with strong support, allowing us to continue to serve our customers as we have been since our founding."
Click here for more information about Jones Stephens' successful parts supplier model.
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.
