BETHESDA, Md., Aug. 11 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested an additional $52 million in its portfolio company Breeze Industrial Products Corporation, a leading global supplier of steel clamps, to support Breeze's dividend recapitalization. American Capital's investment takes the form of a senior second lien loan, senior subordinated debt and holding company subordinated debt. GE Antares Capital, a unit of GE Commercial Finance, is leading a syndication of the revolving credit facility and the senior term B loan. Wind Point Partners is the majority owner of Breeze.
"We are delighted to be providing debt financing in support of the dividend recapitalization of Breeze, our portfolio company whose performance has exceeded expectations since our initial investment two years ago," said American Capital Regional Managing Director Brian Graff. "Our ability to quickly arrange debt financing enables us to play a leading role in the recapitalization of this outstanding company. We are also very pleased to be furthering our growing sponsor relationship with Wind Point Partners, which has played a highly effective hands-on role in this investment including bringing in an extremely experienced, energetic and creative new CEO."
American Capital has invested approximately $4.8 billion in the last twelve months, approximately $2.9 billion year to date and $416 million quarter to date. These amounts do not include American Capital's unfunded equity commitment and debt funded to its affiliate European Capital. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.cfm.
"American Capital is backing a company with exceptional innovative strength that generates a steady stream of proprietary and patented products," said American Capital Principal Todd Wilson. "Breeze commands a substantial competitive position due to its sole-sourcing status with many of its customers and maintains a continuous and highly-effective cost reduction culture that entails the growing use of automation."
"Since our initial investment Breeze has obtained three new patents, centralized materials purchasing, instituted Kaizen events that have led to cost reductions and adopted Kanban disciplines to streamline inventory management," said American Capital Vice President Helen Yang. "As a result, it has significantly reduced its leverage and impressively outperformed our expectations. This quick de-levering, coupled with the Company's attractive growth prospects and continued cost reductions have created conditions for a dividend recapitalization."
American Capital first invested in Breeze in August 2004, supporting Wind Point's acquisition. 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. Currently, Breeze has 23 U.S. and foreign patents and sells its products under the Breeze, Torca, and Clamp-All brand names to over 1,500 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, construction, aerospace and marine 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 $119 million for the fiscal year ending in March 2006.
"We are very fortunate that American Capital has once again participated in the support of one of our portfolio companies," said Wind Point Partners Principal Sarah Kneisel. "American Capital's financing capabilities have proven invaluable in facilitating the recapitalization of this most deserving company. We look forward to a continuing and growing relationship with American Capital as we seek to derive value from middle market companies led by CEOs with successful track records in their industries."
For more information about American Capital's original investment in Breeze, go to http://www.acas.com/our_portfolio/companies/company.cfm?p_comp=158.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of $8.9 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 $350 million per company.
As of July 31, 2006, American Capital shareholders have enjoyed a total return of 420% since the Company's IPO -- an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid a total of $1.2 billion in dividends and paid or declared $21.56 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 http://www.americancapital.com/.
ABOUT WIND POINT PARTNERS
Wind Point is a private equity investment firm with offices in Chicago, Illinois and Southfield, Michigan that manages over $1.8 billion capital. It has invested in more than 80 companies since 1984. In 2004, Wind Point acquired Breeze with the participation of American Capital. Other Wind Point portfolio companies include Knape & Vogt Manufacturing Company, a leading designer, manufacturer and distributor of drawer slides, shelving, storage and ergonomic office products; US Security Associates, a provider of security guard, janitorial and maintenance services; and Bushnell Performance Optics, a leading designer and marketer of branded, high-performance sport optics and premium eyewear products for outdoor and sport enthusiasts. American Capital invested in Bushnell to support its acquisition of Michaels of Oregon Co. in 2005.
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.
