BETHESDA, Md., May 23 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested an additional $24.5 million in its portfolio company The Hygenic Corporation ("Hygenic") to support its acquisition of Performance Health Inc., a developer and marketer of topical analgesics to healthcare practitioners. American Capital's investment takes the form of a second lien term loan and preferred and common equity. American Capital's cumulative gross investments in Hygenic total $47 million. GE Antares Capital, a unit of GE Commercial Finance, and Madison Capital Funding LLC are providing a senior secured credit facility. The Company's existing investors, Baird Capital Partners and Beecken Petty O'Keefe & Company, are investing in Hygenic's equity. Baird Capital Partners is the lead investor in Hygenic.
"We're delighted that Baird Capital Partners considers us a long-term investment partner for Hygenic and has come to us to support the Company's acquisition of Performance Health. American Capital's dependability, as well as creativity and flexibility in creating attractive financing packages, allows us to build on our relationships with private equity firms like Baird Capital Partners," said American Capital Regional Managing Director Darin Winn. "An American Capital portfolio company since 2004, the Hygenic Corporation has a track record of healthy financial performance, which places it in an optimal position to expand its product line with Performance Health."
American Capital has invested approximately $4.1 billion in the last twelve months, approximately $1.6 billion year to date and $805 million quarter 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.acas.com/our_portfolio/our_portfolio.cfm.
"Hygenic's acquisition of Performance Health will create one of the largest manufacturers and marketers of branded consumable products sold to the rehabilitation market and will position the Company as the preeminent consolidator in a rapidly growing and highly fragmented sector," said American Capital Principal Demian Kircher. "The acquisition of Performance Health will enable Hygenic to meet the growing demand for inexpensive low-tech healthcare products driven by demographic factors and healthcare cost containment."
"Performance Health's BIOFREEZE(R) and Hygenic's Thera-Band(R) products both enjoy strong brand awareness among healthcare practitioners," said American Capital Vice President John Neis. "With a combined product offering of strong brand names, leading market shares and complementary distribution channels, there are many appealing opportunities for the combination of both product lines."
Founded in 1992, Performance Health develops and markets topical pain relievers to chiropractic, podiatry, physical, occupational and massage therapy practitioners. The Company is headquartered in Export, PA and distributes its products primarily through healthcare and therapy professionals. Its products include BIOFREEZE(R), a pain reliever used to help relieve pain from common sprains, muscle aches, injuries or arthritis, and PROSSAGE (R), a warming massage ointment.
American Capital first invested in Hygenic in January 2004. Founded in 1925, Akron, OH-based Hygenic is a leading manufacturer of branded and private label healthcare and fitness products. The Company manufactures an extensive range of products under the Thera-Band(R), Dyna-Band(R), Aquafins(TM) and Parabath(R) brands, including resistive exercise bands and tubing, exercise balls, exercise mats and aquatic products as well as healthcare and specialty products.
"American Capital's comprehensive due diligence and dedicated professionals have made them a valued partner since our original investment in Hygenic over two years ago," said C. Andrew Brickman, Partner at Baird Capital Partners. "This is our third time working with American Capital and we look forward to a continued relationship as together we support Hygenic's expansion to meet the demands of the dynamic healthcare market."
For more information about American Capital's original investment in The Hygenic Corporation, go to http://www.acas.com/our_portfolio/companies/company.cfm?p_comp=123.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7.7 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.
As of April 30, 2006, American Capital shareholders have enjoyed a total return of 405% since the Company's IPO -- an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $1.1 billion in dividends and paid or declared $20.73 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 at http://www.AmericanCapital.com.
ABOUT BAIRD CAPITAL PARTNERS
Baird Capital Partners, the U.S.-based private equity affiliate of Robert W. Baird & Co. (Baird), provides change-of-control and growth capital to U.S.- based, middle-market companies in the business services and manufactured products sectors. Baird Capital Partners also has an operating team located in three offices in China, focused on facilitating and executing Asia sourcing, manufacturing and distribution opportunities for portfolio companies. Baird Capital's global private equity business has raised and managed $1.7 billion in capital. Baird Capital Partners' portfolio of investments include Accume Partners LLC, a leading national provider of internal auditing, IT auditing, Sarbanes-Oxley compliance and related risk management services; Pharmedium Healthcare Company, a leading provider of intravenous admixture services supplied to the hospital and alternate site pharmacies market under the COMPASS Services name; and Qualitor Inc., a leading diversified supplier of aftermarket parts for the automotive and medium- to heavy-duty truck and trailer industries. In December 2004, American Capital invested in Baird Capital Partners' and Thayer Capital's acquisition of Qualitor.
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.
American Capital Strategies Ltd.