BETHESDA, Md., Oct. 5 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested $26 million in Kirby Lester LLC, a leading developer and manufacturer of pill counting machines for retail and chain pharmacies in the United States and Canada. American Capital’s one stop debt financing solution takes the form of a senior term loan, senior subordinated debt and participating preferred equity. American Capital is also providing a revolving credit facility. The investment supports the acquisition of Kirby Lester by private investors, Kirby Lester management and Garry Zage, a seasoned industry executive who will become Kirby Lester’s President and CEO. The private investors and Zage are investing in the Company’s equity. Post close, American Capital will own 30% of Kirby Lester, on a fully diluted basis.
“Our one stop debt financing solution in support of the acquisition of Kirby Lester backs the growth of a leading brand in the pill counting and pharmacy automation industry,” said American Capital Chief Operating Officer Ira Wagner. “American Capital’s in-house due diligence capabilities and financial resources make us a good choice for private investors and management teams seeking a partner for their acquisitions. We are pleased to work with Garry Zage, a recognized healthcare executive.”
American Capital has invested nearly $3 billion in the last twelve months, over $2.2 billion year to date and approximately $920 million in the third quarter of 2005. For more information about American Capital’s portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.aspx.
“Kirby Lester is a highly attractive niche business. The Company’s large installed base of over 18,000 machines, leading market share of table top counting devices in the U.S. and Canada and strong brand equity create a sustainable market position and basis for growth,” said American Capital Managing Director Ian Larkin. “In addition, Kirby Lester offers its customers a compelling value proposition with its patented optical counting technology, which minimizes pill dispensing error and enables pharmacies to significantly increase efficiency and realize quick cost savings. We are confident in the leadership of Garry Zage, a motivated and experienced executive in healthcare management and pharmacy automation, and believe in his ability to harness Kirby Lester’s strong brand name and capitalize on favorable industry dynamics.”
Established in 1971, Stamford, CT-based Kirby Lester assembles and sells a variety of industry leading table top pill counters to serve every prescription-filling need, from medium and small scale repacking to complete dispensing solutions. The Company’s products funnel pills from their original bottles and quickly count them by infrared light or by weight. Kirby Lester’s products serve a diversified customer base of independent, mass merchant, hospital and mail order pharmacies as well as pharmaceutical distributors.
“With strong financial backing from American Capital and our other investors, Kirby Lester is ready for future growth through increased market penetration and establishing beneficial partnerships,” said Garry Zage, newly appointed Kirby Lester President and CEO.
For more information about Kirby Lester’s high performing pill counting machines, go to http://www.ACAS.com/news/press_releases/pr/pr.aspx?p_pr=pr20051005a.html
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $6 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 September 30, 2005, American Capital shareholders have enjoyed a total return of 407% since the Company’s IPO -- an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid $18.29 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, AmericanCapital.com.
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.
CONTACT: Ian Larkin, Managing Director, or Greg Long, Vice President,+1-312-681-7400, or Brian Maney, Director, Corporate Communications,+1-301-951-6122, all of American Capital Strategies Ltd.
Web site: http://www.americancapital.com//
