ACAS American Capital, Ltd.

LONDON, Aug. 1 /PRNewswire-FirstCall/ -- European Capital S.A. SICAR announced today it has invested euro 126 million ($161 million) in the One Stop Buyout(TM) of Farrow & Ball, the international market leader in luxury decorative paints and wallpaper. European Capital's investment takes the form of senior term loans, senior subordinated debt, loan notes and common equity. Farrow & Ball's management team is investing in the equity of the Company. Post close, European Capital owns 72% of the Company, on a fully diluted basis. "European Capital has now completed four One Stop Buyouts(TM), two of which have been recently executed by the London office," said Ira Wagner, President of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital. "The One Stop Buyout(TM) of Farrow & Ball, the clear market leader in luxury paints, signals the rapidly rising stature and further maturing of European Capital. The growing recognition of European Capital's outstanding mezzanine and buyout capabilities is producing an ever greater pipeline of the highest quality transactions, including this excellent opportunity." European Capital has invested euro 831 million ($1 billion) in 27 companies since its formation in August of 2005 and euro 655 million ($836 million) in 19 companies in 2006. For more information about European Capital's portfolio, go to http://www.europeancapital.com/our_portfolio/our_portfolio.cfm. "European Capital was able to win this vigorously contested auction in large part due to our one stop financing capability where we underwrite all of the equity, mezzanine and senior debt requirements, a highly attractive offering," said Simon Henderson, European Capital Managing Director. "Farrow & Ball is an outstanding, high growth company with the best product and brand in its market," said Fergus Hall, who led the transaction for European Capital. "We are delighted to be working in partnership with the management team to achieve the full potential of Farrow & Ball." Founded by two chemists, John Farrow and Richard Ball, in 1952, Farrow & Barrow sells luxury decorative paint for interior and exterior use, as well as wallpaper. Farrow & Ball's interior decorative paint, by far its major product, comes in 132 colors and 13 finishes and stands out in the market because of its traditional formulations, high-quality finish and depth of color. Farrow & Ball sells through independent stockists and showrooms in the U.K., mainland Europe and North America. In the U.K., it also sells through a leading do-it-yourself retailer, Homebase, and in North America, through design centers. Farrow & Ball's headquarters and manufacturing facilities are in Wimborne, U.K. The Company also has offices and a distribution center in Toronto, Canada and showrooms in London, Edinburgh, Harrogate, Guildford and Wimborne in the U.K. and also in Paris and Dublin. Its North American showrooms are in Toronto, New York, NY, Boston, MA, Greenwich, CT, Los Angeles, CA and Washington, D.C. Farrow & Ball employs 220 people. "From our first encounter with European Capital, we were greatly impressed by their understanding of our business, their professionalism and the breadth of their financing capabilities. We are delighted to have them as our new partner," said Farrow & Ball Chief Executive Officer Josh Layish. "Farrow & Ball has an unrivalled reputation across the world for the quality and elegance of our paint and wallpaper. Our traditional, highly pigmented formulations give a greater depth of color and higher quality finish than their modern equivalents. We intend to maintain our uncompromising dedication to the highest quality standards, using traditional manufacturing methods and unadulterated formulations." ABOUT EUROPEAN CAPITAL European Capital is a buyout and mezzanine fund with capital resources of euro 1.1 billion ($1.3 billion). European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and mid-sized public companies. European Capital generally invests from euro 5 million to euro 125 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations. Companies interested in learning more about European Capital's flexible financing should contact Simon Henderson or Nathalie Faure Beaulieu at + 44 (0)20 7539 7000 in London, or Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, or visit the website at http://www.europeancapital.com/. ABOUT AMERICAN CAPITAL American Capital Strategies Ltd. (NASDAQ:ACAS), an affiliate of European 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. 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. DATASOURCE: European Capital CONTACT: Simon Henderson, Managing Director, +44 (0)20 7539 7000, Fergus Hall, Investment Director, +44 (0)20 7539 7046, or Brian Maney, Director, Corporate Communications, +1-301-951-6122, all of European Capital Web site: http://www.europeancapital.com/ http://www.americancapital.com/

Copyright