BETHESDA, Md., July 7 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested $33 million in its portfolio company Chronic Care Solutions Inc., doing business as CCS Medical (“CCS Medical”), to support CCS Medical’s acquisition of the Pharmacy and Supply Division of Matria Healthcare Inc. . American Capital’s investment takes the form of subordinated debt and preferred equity. American International Group Inc. also invested in subordinated debt. KRG Capital Partners, CMS Companies, First Analysis Corporation and CCS Medical management invested in preferred equity, and KRG Capital Partners maintains its majority ownership of CCS Medical. The transaction was also financed with an increase in the CCS senior credit facilities. CCS Medical is a leading direct-to-consumer provider of medical supplies to patients suffering from chronic conditions.
American Capital’s investment in CCS Medical now totals $78 million. CCS Medical is American Capital’s largest investment, representing approximately 3% of assets. “It remains important to note that as we have steadily increased our business and grown our balance sheet, we have been able to increase our investments in individual portfolio companies while reducing the size of our investment per company as a percentage of our assets,” said American Capital CFO John Erickson. “Therefore, our concentration risk is declining while company investment size is increasing. Additionally, increasing the size of our largest investments is resulting in the addition of stronger, better managed companies to our portfolio.”
American Capital has invested over $1.3 billion in the last twelve months and over $600 million year to date. For more information about American Capital’s portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.aspx.
“We remain confident in KRG and in CCS Medical’s exceptional management team and the platform they are building,” said American Capital COO Ira Wagner. “We are pleased to support this acquisition that positions CCS Medical so well for the future.”
“The acquisition provides CCS Medical with the opportunity to leverage its superior IT, customer service and compliance capabilities over a much larger patient base,” said American Capital Managing Director Darin Winn. “We believe that CCS Medical continues to provide unparalleled products and services to the patients on its programs and to the government and managed care payors.”
Founded in 1994, Clearwater, FL-based CCS Medical serves patients in the United States and Puerto Rico. The Company sells a full line of diabetic, respiratory, ostomy and urological products, including glucose meters, test strips, lancets, insulin pumps, inhalers and nebulizers, all of which are high quality branded products from leading manufacturers such as Johnson & Johnson, Roche, Bayer and Medtronic MiniMed, and serve a customer base, combined with the acquisition, of over 200,000 patients. CCS Medical also has a mail-order pharmacy, licensed in all 50 states, that provides its patients with a full line of prescription drugs. The Pharmacy and Supply Division provides diabetic, respiratory, ostomy and pharmaceutical fulfillment for patients who receive reimbursement from a number of sources including Medicare, various Medicaid plans, Drug Cards, multiple Managed Care Organizations and other private insurers.
“American Capital is the ideal long term investment partner,” said KRG Capital Partners Managing Director Mark King. “They understand value creation, supporting our platform and acquisition strategy for CCS Medical by quickly getting up to speed on the industry and the corresponding transactional requirements.”
As of June 30, 2004, American Capital shareholders have enjoyed a total return of 242% since the Company’s IPO -- an annualized return of 20%, assuming reinvestment of dividends. American Capital has declared a total of $14.52 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored 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.
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/.
Founded in 1996, KRG is a Denver based private equity buyout firm that currently manages over $860 million of committed equity capital and equity co- investments. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. The firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. Since inception, KRG has invested in 18 “platform companies” and has completed 52 add-on acquisitions for those platforms.
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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
American Capital Strategies Ltd.
CONTACT: Darin Winn, Managing Director, +1-214-273-6650, or Brian Maney,Director, Corporate Communications, +1-301-951-6122, both of American CapitalStrategies Ltd.
Web site: http://www.americancapital.com/