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Bethesda, MD - December 28, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $89 million in the acquisition of Pasternack Enterprises, a manufacturer, marketer and value-added distributor of coaxial, fiber optic connectors, adaptors, cables, and other related electronic parts. American Capital's investment takes the form of senior term debt, senior and junior subordinated debt and equity. American Capital is also providing a revolving credit facility. CEO Chuck Becker, an industry veteran, is also making a significant equity investment.
"Pasternack is American Capital's 13th buyout of 2004," said COO Ira Wagner. "We are backing a company that is very well known in the electronics industry. Pasternack occupies a unique market niche, effectively supplying competitively priced products to sophisticated customers who require rapid delivery."
American Capital has invested over $1.8 billion in the last twelve months, over $1.7 billion year to date and over $500 million quarter to date.
For more information about American Capital's portfolio click here.
"It is widely said in the industry that Pasternack carries the broadest product offering," said Managing Director Frank Do. "Pasternack fills a distinctive niche, providing customers around the world a readily available source for RF coaxial and fiber optic products. The company's product breadth, quick turnaround capability, superior customer service, global reach and loyal customer base provides an excellent foundation for the attractive growth opportunities we will pursue. In addition, we are fortunate to be working with an experienced CEO and co-investor and a strong group of existing managers and staff members."
Pasternack, based in Irvine, CA was founded in 1972. Pasternack's product offering is the broadest in the RF and microwave industry. In addition, the company provides value-added cable assembly capabilities to its customers. Its diverse and growing product portfolio is sold into multiple end markets, including the military, telecommunications, instrumentation, computers and computer peripherals, consumer electronics, commercial aircraft, industrial equipment and medical equipment. The company's products are used in such end-use products as electronic instruments, radar, and base stations for wireless networks as well as transmitters for wireless LANs.
"American Capital is the right partner for Pasternack," said Chuck Becker, incoming President and CEO. "American Capital quickly recognized the opportunity and just as quickly began supporting us with the resources that were needed to take Pasternack Enterprises to a new level."
For more information about Pasternack, go to www.pasternack.com.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of more than $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity 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.
As of November 30, 2004, American Capital shareholders have enjoyed a total return of 299% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $583 million in dividends and paid or declared $16.03 dividends per share since its August 1997 IPO at $15 per share.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, 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, national or international 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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