BETHESDA, Md., April 7 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested in the One Stop Buyout(TM) of Innova Holdings Inc. and its subsidiaries Innova Electronic LP and Extel LP (collectively, "Innova"). Innova is a leading manufacturer of ruggedized printed circuit boards for the oilfield services industry and other technologies designed to operate in difficult environments. American Capital's investment takes the form of senior term debt, a CAPEX facility, senior subordinated debt and preferred and common equity. American Capital is also providing a revolving credit facility. Innova's management team is also investing in the equity of Innova. Post close, American Capital owns 56% of the Company, on a fully diluted basis, with members of Innova's management team owning the balance.
"Our One Stop Buyout(TM) of Innova, a leading provider of electronic design, manufacturing and assembly services primarily for the oilfield service industry, marks American Capital's fifth investment in four energy related companies in the last 18 months," said American Capital Regional Managing Director Darin Winn. "We're pleased to add Innova, another leader in the energy industry, to our broadly diversified portfolio of leading middle market companies and to our energy portfolio."
American Capital has invested approximately $3.6 billion in the last twelve months and over $700 million year to date. These amounts do not include American Capital's unfunded equity commitment and debt funded to its portfolio company European Capital. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.cfm.
"Innova's management team has established Innova's reputation for quality and reliability and guided the Company to a defensible and leading market position in the manufacture of ruggedized printed circuit boards for oilfield service downhole logging and drilling companies," said American Capital Principal Kevin Kuykendall. "Innova's success is a result of its: innovative, tailored and patented manufacturing processes, which deliver specialized printed circuit boards for specific drilling and logging applications; long- term customer relationships, which have created significant customer loyalty; a highly trained workforce; substantial quality controls, including ISO 9001 certification; and a new and highly efficient 100,000 square feet state-of- the-art design and production facility."
Founded in 1989, Innova is a manufacturer and systems integrator of industrial electronics for oilfield original equipment manufacturers, offering full service outsourcing, including custom design of switching and high- voltage power supplies, hardware and software engineering for surface data acquisition systems, system integration and testing. In particular, the Company manufactures and assembles printed circuit boards for the downhole logging and drilling oilfield service industry. Downhole logging is a process used to detect subsurface producible hydrocarbons by measuring rock and fluid properties, wellbore characteristics and other physical properties in oil wells prior to hydrocarbon production. The Company also manufactures other extreme-environment electronics, hazardous-area computers and sunlight- viewable LCD monitors. Customers include companies in the oilfield service industry, including the Big 4 providers of directional drilling and logging services, as well as companies in the defense, medical, and other consumer and commercial applications industries. The Company is headquartered in Houston, TX and employs nearly 400 people.
"American Capital's Energy Group has the energy industry knowledge and expertise to truly understand our business and growth objectives, as well as industry dynamics," said Innova Holdings President and CEO Trey Cook. "With American Capital's financial support, we are looking forward to taking the Company to the next level by expanding into additional products and services."
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital invests up to $300 million per company.
American Capital Energy Group
The American Capital Energy Group invests senior debt, subordinated debt and equity across all segments of the energy industry, including equipment manufacturing, production, transportation, distribution, and services in oil & gas, power and alternative energies, including ethanol. Companies interested in learning more about American Capital's energy initiative should contact Kevin Kuykendall at (214) 273-6634, or visit the website at http://www.americancapital.com/energy.
As of March 31, 2006, American Capital shareholders have enjoyed a total return of 409% since the Company's IPO -- an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $1 billion in dividends and paid or declared $19.91 dividends per share since its August 1997 IPO at $15 per share.
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.
