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Bethesda, MD - September 30, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested an additional $7 million in its portfolio company 3SI Security Systems ("3SI") to support the acquisition of the assets of U.S. Currency Protection Corp. ("USCPC"). American Capital's additional investment takes the form of junior and senior subordinated debt and brings the Company's total current investment in 3SI to $65 million. Union Bank of California NA provided the original revolving credit facility and senior term loans to 3SI and is increasing the senior debt facility for this acquisition.
"This additional investment in 3SI illustrates our dedication to assisting in the growth of our portfolio companies," said American Capital COO Ira Wagner. "We believe this strategic acquisition by 3SI will be beneficial in creating value in the years ahead."
American Capital has invested over $1.5 billion in the last twelve months, over $1 billion year to date and over $350 million quarter to date.
For more information about American Capital's portfolio click here.
American Capital first invested in 3SI in July 2002, supporting Lincolnshire Equity Fund II's acquisition. In 2003, American Capital purchased 3SI from Lincolnshire in a buyout funded with $58 million of funds from American Capital along with capital from Union Bank of California NA. 3SI is the leading global provider of security solutions utilizing dye-based staining solutions to protect currency from theft in banks, ATMs, safes and transport applications.
For over 40 years, Fountain Hills, AZ-headquartered USCPS has been a designer, manufacturer and supplier of dye-packs used to to protect and recover cash from bank robberies. Its new tracking product allows customers and law enforcement agencies to track stolen cash over the the Internet in real time and assist in recovering cash and apprehending thieves.
The combined companies, based in Exton, PA, will have over 150 employees in two U.S. facilities in Pennsylvania and Georgia and the European headquarters in Belgium. The united entity will serve a well diversified customer base of approximately 30,000 locations, including numerous top financial institutions worldwide: 86 of the top 100 banks in the U.S. and 24 of the top 50 banks in Europe.
"Our ongoing relationship with American Capital allows us to grow and strengthen our leading position in the currency protection market," said 3SI Security Systems CEO Thomas Oxenfeld. "Since 2002, American Capital has been the ideal investment partner, understanding our business and supporting our growth plans. With American Capital's support in this acquisition, we will be able to provide our global base of customers with a transformational tracking product that will not only aid in the recovery of stolen cash, but also will increase the rate of criminal apprehensions."
For more information about 3SI's market leading currency protection solutions click here.
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 $4.2 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.
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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