Bethesda, MD - November 25, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $38 million in CamelBak Products Inc., the dominant global designer, manufacturer and marketer of portable hands-free hydration systems, or customized backpacks that include integrated water storage and delivery systems. American Capital's investment takes the form of senior and junior subordinated debt and supports the acquisition of CamelBak by Bear Stearns Merchant Banking. The Bank of New York and BNP Paribas are providing a revolving credit facility and senior term loan.
"Our investment in CamelBak adds another excellent consumer goods manufacturer to our growing, diversified portfolio," said American Capital COO Ira Wagner. "This investment further demonstrates our ability to work alongside experienced, committed investors such as Bear Stearns Merchant Banking to support the continued success of a market-leading company. This is our first investment with Bear Stearns Merchant Banking and it is the 13th time this year that we have invested for the first time with a new private equity relationship."
American Capital has invested more than $900 million in the past twelve months and more than $800 million this year.
For more information about American Capital's portfolio click here.
"American Capital is supporting the global leader in the hydration market whose broad product offering and high quality, durable and easy to use hydration backpacks have captured the dominant market share of all segments of the market," said American Capital Principal John Thornton. "Furthermore, CamelBak's ability to capitalize on its proprietary, patented technologies, well-known brand name, steady stream of new and innovative products, thousands of customers, strong end-user loyalty and low cost operations, including Asian outsourcing and Mexican manufacturing, has further solidified its market position and prepared it to meet future market demands."
Headquartered in Petaluma, CA, CamelBak is the global leader in the design, manufacturing and marketing of a broad line of customized backpacks that include integrated water storage and delivery systems. These market-leading hydration backpacks are sold to thousands of customers, including top sporting goods retailers, military and government customers and law enforcement agencies. The Company operates three facilities in California and Mexico and has experienced tremendous sales growth over the past several years. Pictured at left is CamelBak's Rim RunnerTM, a stylish and multi-functional hydration backpack perfect for year round hiking.
"This is the first time we are partnering with American Capital and we're impressed with their staff of investment professionals, ability to quickly conduct intensive due diligence and provide the necessary financing package to complete this transaction," said Bear Stearns Merchant Banking Senior Managing Director Bo Arlander. "We look forward to working with our investment partners and CamelBak management to continue to grow the company by broadening its existing product offering, introducing new products and entering new product segments and geographic markets at home and abroad."
For more information about CamelBak and its extensive line of market leading products 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 $13.06 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 in excess of $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.
