BETHESDA, Md., Aug. 1 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested $111 million in the one-stop buyout of Fosbel Holdings Ltd., the global leader in providing refractory maintenance and repair services to operators of heavy industrial ovens and furnaces in the coke and glass production industries. American Capital is providing a revolving credit facility and is investing in senior term debt, senior and junior subordinated debt and equity. Fosbel management is also investing significantly in the equity.
"With this one-stop buyout, American Capital is supporting the growth of a leading global niche player with strong market share in its respective markets, robust demand for its value-added services and excellent cash flow," said American Capital COO Ira Wagner.
American Capital has invested over $2.5 billion in the last twelve months, approximately $1.5 billion year to date and approximately $171 million quarter to date. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.cfm.
"Fosbel is led by an experienced and well incentivized team of manager- owners that have driven the growth and profitability of the Company," said American Capital Managing Director Tom Gregory. "Fosbel now commands the dominant world market share in ceramic welding and is expanding its leadership within the specialty ceramic coatings markets for the hydrocarbon processing industries. In addition, the Company has been able to leverage its ceramic welding reputation to position itself in the coke brickwork market. None of its competitors offer the depth and breadth of Fosbel's value-added repair and maintenance services, which are integral to extending the productive lives of their customers' assets."
"Fosbel's strong customer relationships, accumulated experience and expertise constitute significant barriers to entry," said American Capital Principal Demian Kircher. "In addition, Fosbel's customer, end market and geographic diversity help to insulate it from localized market cyclicality."
Founded in 1981, Fosbel's service offerings are segmented across three primary customer groups -- Coke, Glass and Cetek. The Coke and Glass segments provide maintenance and repair services using similar technologies to oven and furnace operators in those industries. The Cetek segment provides process and efficiency improvement services to customers in the hydrocarbon processing industries using innovative and proprietary technologies. The Company maintains relationships with hundreds of customers around the world, maintaining sales offices in Australia, Brazil, China, Germany, India, Japan, South Africa, the United Kingdom and the United States.
"Fosbel has been providing the technology, expertise, manpower and materials to repair a wide range of furnace-related problems in the coke and glass production industries for twenty years," said Fosbel CEO Derek Scott. "American Capital's support enables us to continue to expand our global base of customers by applying the distinctive services and attention to detail they require and deserve and to which our existing customers have grown accustomed."
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.4 billion. American Capital invests in and sponsors 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 July 31, 2005, American Capital shareholders have enjoyed a total return of 409% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $782 million in dividends and paid $17.51 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.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
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.
© 2005 PR Newswire
