American Capital Invests Additional $15 Million In Portfolio Company CIVCO Holdings
BETHESDA, Md., Oct. 19 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested an additional $15 million in its portfolio company CIVCO Holdings Inc. ("CIVCO"), a global specialist in design, manufacture and marketing of specialized medical products for ultrasound and minimally invasive surgical equipment and procedures. American Capital's investment takes the form of junior subordinated debt with warrants and brings its total current investment in CIVCO to $30 million. The investment supports KRG Capital Partners' recapitalization of CIVCO. CIVCO's existing senior lenders have increased their senior debt financing in support of the recapitalization. American Capital owns approximately 32% of CIVCO on a fully diluted basis.
"American Capital is pleased to increase our investment in CIVCO, an outstanding and successful portfolio company whose premium products support the ultrasound imaging equipment manufactured by virtually all the leading ultrasound OEMs," said American Capital COO Ira Wagner. "We remain confident in the leadership of KRG Capital and the future growth of CIVCO as it strives to become a global one-stop-shop for consumable accessories not only in ultrasound, but in other imaging modalities as well."
American Capital has invested over $1.5 billion in the last twelve months, over $1.1 billion year to date and over $25 million quarter to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.aspx.
"We are pleased to continue to support the growth of a leading global designer, manufacturer and marketer on the forefront of advancement in the ultrasound imaging equipment industry," said American Capital Managing Director Darin Winn. "With the market leadership position in its core product lines, strategic partnerships with leading OEMs, substantial recurring revenues from its portfolio of consumable and disposable products and the continued guidance of KRG Capital, CIVCO is well positioned to meet the increasing market demands as ultrasound technology use increases due to its superior performance, widespread availability and lower costs."
American Capital first invested in CIVCO in July 2003, supporting KRG Capital's acquisition with a $15 million investment. Headquartered in Kalona, IA, CIVCO's primary product lines include equipment covers, imaged-guided biopsy systems, ultrasound supplies and imaging equipment positioning systems. The Company operates out of two facilities in Kalona, IA and Sarasota, FL and employs over 120. Customers include GE Healthcare, Siemens Medical Systems Inc., Philips Medical Systems, B-K Medical and Boston Scientific.
For more information about American Capital's 2003 investment in CIVCO, go to http://www.acas.com/our_portfolio/companies/company.aspx?p_comp=106
"Having worked with American Capital throughout the years in many investments, as well as our original acquisition of CIVCO, we were confident that we could turn to them again for additional support in this transaction," said KRG Capital Partners Managing Director Bruce Rogers. "We're looking forward to continuing to work with American Capital, a reliable investment partner, and CIVCO management in the years ahead."
As of September 30, 2004, American Capital shareholders have enjoyed a total return of 291% since the Company's IPO -- an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $583 million in dividends and paid $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $4.2 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 Capital Partners is a Denver based private equity buyout firm that currently manages over $1 billion of committed equity capital and equity co-investments. KRG specializes in acquiring and recapitalizing middle-market companies. Since inception, KRG has invested in 19 platform companies and has completed 55 add-on acquisitions for those platforms. American Capital has invested with KRG in 8 other portfolio companies: Atlantech International Inc., a holding company for Tensar Corporation Inc., a manufacturer of high-performance geogrids, Case Logic Inc., a designer and manufacturer of storage products and accessories, Chronic Care Solutions Inc, doing business as CCS Medical, a leading national direct-to-consumer, mail- order chronic illness supply company focused primarily on diabetic supplies, FMI International Inc., a third party logistics provider to the U.S. apparel industry, HMS Healthcare Inc., a holding company for non-risk access preferred provider organizations, Interior Specialists Inc., a leading provider of outsourced interior design and installation services for homebuilders in the Southwestern U.S., TransCore Holdings Inc., a provider of transportation information management systems and service, and Trinity Hospice LLC, a provider of hospice care.
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/