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Bethesda, MD - September 1, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $12 million in Breeze Industrial Products Corporation, a leading global supplier of proprietary and patented steel clamps primarily serving the heavy duty truck, automotive and industrial sectors. American Capital's investment takes the form of senior and junior subordinated debt and supports the acquisition of Breeze by Wind Point Partners. Albion Alliance LLC is also investing in the subordinated debt of Breeze. Antares Capital Corporation is providing the senior debt facility.
"We are delighted that Wind Point came to us for mezzanine financing in support of its acquisition of Breeze. This investment marks our 16th announced new sponsor relationship in the last twelve months," said American Capital COO Ira Wagner. "We continue to see an increase in transaction volume in the M&A market, and anticipate that this market rebound will present us with more opportunities to develop new relationships with other private equity firms."
American Capital has invested over $1.5 billion in the last twelve months and over $900 million year to date.
For more information about American Capital's portfolio click here.
"We were attracted to Breeze because of its diversity of products and end markets as well as its innovative leadership and sole-sourced position on major auto OEM platforms," said American Capital Principal Todd Wilson. "With these advantages, Breeze can expect to capitalize on the current growth in its key end markets due to increasingly complex emissions and exhaust systems requiring reliable, highly-engineered clamps like those manufactured by Breeze. In addition, the Company's sole-source position on major auto OEM platforms serves as a meaningful barrier to entry, as automakers turn to shared platforms as a means of lowering costs."
Founded in 1948 in Saltsburg, Pennsylvania, Breeze invented and patented the first worm-drive hose clamp, which uses a worm screw configuration to tighten, seal and connect pipes and tubes. Breeze now manufactures worm-drive clamps, exhaust clamps, T-Bolt and V-Band clamps and no-hub couplings. These components are engineered in a wide variety of sizes, strengths, designs and materials for diverse clamping applications. The Company is the only major supplier capable of offering both metal-to-hose and metal-to-metal clamping solutions. Currently, Breeze has 22 U.S. and foreign patents and sells its products under the Breeze, Torca, and Clamp-All brand names to over 500 customers in more than 40 countries. Breeze provides clamps directly to OEMs and Tier I suppliers within the automotive and heavy duty truck markets, and also serves the industrial, hardware, plumbing, agricultural and construction industries together with its network of over seventy distributors. Customers include Tenneco, PACCAR, ArvinMeritor, DaimlerChrysler, Cummins, Textron, Navistar/International, Volvo and Harley Davidson. The Company has three ISO 9001/2000 certified operating facilities in Pennsylvania, Michigan and Frittlingen, Germany and employs nearly 500. Breeze recorded revenues of nearly $89 million for the fiscal year ending March 2004.
"American Capital is unique in its ability to fully understand our needs as well as the needs of our portfolio company. They were able to work quickly and efficiently with us, Antares, Albion and Breeze management to bring this transaction to a timely close," said Wind Point Principal Sarah Kneisel. "Wind Point's investment in Breeze is consistent with our focus on partnering with top caliber CEOs to acquire well-positioned middle market businesses with a clear path to value creation. With these strong financial resources and the support of its investment partners, Breeze is in a better position to pursue the value creation initiatives we have identified."
Click here for more information about Breeze's history of product innovation and continuous improvement.
As of August 31, 2004, American Capital shareholders have enjoyed a total return of 281% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $524 million in dividends and paid or declared $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3.3 billion. American Capital is an investor in and sponsor of 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 and Senior Vice President, Business Development, at (800) 248-9340, or visit our website.
Wind Point is a private equity investment firm with offices in Chicago, Illinois and Southfield, Michigan that manages over $1 billion in capital. Wind Point has invested in more than 75 companies since 1984. Its portfolio of investments include: Benchmark Medical, a provider of outpatient physical rehabilitation services; Nonni's, a leading manufacturer and marketer of specialty, premium baked goods; Air Serv, the largest operator of freestanding coin-operated tire inflation and vacuum vending machines in the United States; and VICORP Restaurants, the owner and operator of two leading family style restaurants.
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.
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This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.
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