BETHESDA, Md., Sept. 2, 2011 /PRNewswire/ -- American Capital
Ltd. (Nasdaq: ACAS) announced today that on August 26, 2011 its portfolio company VP
Acquisition Holdings, Inc. ("Value Plastics") was acquired by
Nordson Corporation (Nasdaq: NDSN) for $250
million. American Capital received $138 million in proceeds and realized a gain of
$93 million during the third quarter
from the transaction, subject to post-closing adjustments.
Value Plastics was advised by Lazard Middle Market LLC on the
transaction.
Including investments in Value Plastics by American Capital's
affiliated funds under management, the total proceeds received
during the third quarter from the transaction were $222 million, realizing a gain of $157 million, subject to post-closing
adjustments. Including dividends received over the life of
their investments, American Capital and its affiliated funds under
management received total equity proceeds of $208 million, which exceeded their aggregate
original equity investment by $165
million.
Founded in 1968 and based in Fort
Collins, CO, Value Plastics designs and manufactures a
proprietary line of plastic, disposable fluid connectors used to
link flexible tubing in medical devices, analytical equipment and
healthcare products of all types. These products transport
blood, air, irrigation solutions and medications, among other
fluids. Value Plastics manufactures over 2,800 SKUs in over
400 separate shapes and configurations of disposable fluid
connectors, including barbed plastic luer fittings, tube-to-tube
fittings, blood pressure components and threaded fittings.
Value Plastics' products are used in a wide variety of
medical device, biopharmaceutical and instrumentation applications.
The products are also used in certain, high value industrial
applications where high precision and consistent quality are
demanded. Value Plastics has a unique and diverse global
customer base, which includes many of the top tier medical industry
players as well as large and small medical device
manufacturers.
American Capital originally invested $89
million in the October 2005
recapitalization of Value Plastics. American Capital's
investment took the form of senior term loans, senior and junior
subordinated debt and common equity. American Capital also
provided a $5 million revolving
credit facility. For more information about American
Capital's investment in Value Plastics, please go to
http://www.americancapital.com/our_portfolio/companies/value_plastics.html.
American Capital's compounded annual rate of return earned over
the life of its total investment was 29%, including interest,
dividends and fees earned over the life of its investment.
The proceeds received by American Capital were greater than
the second quarter 2011 valuation of American Capital's
investment by $33 million, or
31%.
"The success of the Value Plastics investment is a result of its
strong management team, leading market position, and exceptional
financial performance. We are extremely proud of the
company's improvements and success over our investment period,
which made it an attractive purchase for Nordson," said
Darin Winn, Senior Managing
Director. "We are very pleased with the outcome of this
transaction, and continue to actively seek new One-Stop Buyout®
opportunities of up to $300 million
as well as lending opportunities from $10
million to $100 million."
"Value Plastics is a proven innovator in the fluid connection
components industry with a long history of successful product
development," said Kyle Bradford,
Principal. "We believe that moving forward, Nordson's
operational and financial support will enable Value Plastics to
continue its history of innovation and grow its leading position in
the industry."
Since American Capital's August
1997 IPO through the second quarter of 2011, the company has
earned a 11% compounded annual return, including interest,
dividends, fees and net gains, on 325 realizations of senior debt,
subordinated debt, equity and structured products investments,
totaling $16 billion of committed
capital. These realizations represent 66% of all amounts
invested by American Capital since its August 1997 IPO. Proceeds from these
realizations exceeded the total associated prior quarter valuation
of the investments by less than 1%. American Capital earned a
28% compounded annual return on the exit of its equity investments,
including dividends, fees and net gains.
For a chart showing American Capital's exited portfolio
companies, please go to
http://www.americancapital.com/our_portfolio/exited.html.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and
global asset manager. American Capital, both directly and
through its asset management business, originates, underwrites and
manages investments in middle market private equity, leveraged
finance, real estate and structured products. Founded in
1986, American Capital has $52
billion in assets under management and eight offices in the
U.S., Europe and Asia. American Capital and European
Capital will consider investment opportunities from $10 million to $300 million. For further
information, please refer to www.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
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.
Contact:
Darin Winn, Senior Managing
Director, (214) 273-6650
Jeff MacDowell, Managing Director,
(214) 273-6633
Kyle Bradford, Principal, (214)
273-6637
Marshall White, Vice President,
(214) 273-6657
SOURCE American Capital, Ltd.