American Capital Offloads Lifoam - Analyst Blog
21 1월 2013 - 9:00PM
Zacks
Last week, American Capital Ltd. (ACAS)
announced the divesture of its portfolio company, Lifoam Holdings
Inc. Jarden Corporation (JAH) acquired the unit in
December 2012 for $60 million.
Headquartered in US, Lifoam leads the market in providing
expandable polystyrene (EPS) and polyurethane (PUR) products.
Lifoam's products include foam picnic coolers, reusable ice and
freeze packs and sophisticated protective and thermal packaging
products. The company provides products for consumer, healthcare
and commercial applications.
Of the proceeds, American Capital received $60 million in debt and
equity proceeds and earned $14 million, subject to post-closing
adjustments. The company has earned 11% compounded annual rate of
return on its debt and equity securities over the life of its
investment, including interest, dividends, capital gains and
fees.
Despite the economic downturn, Lifoam recorded strong and steady
growth in earnings. With the support of American Capital, Lifoam is
well positioned for continued growth in the future, attributed to
its strengthening foothold in the attractive healthcare cold chain
packaging market.
American Capital anticipates the deal to be accretive based on its
returns from the sale and expects to continue seeking new One-Stop
Buyout opportunities or supporting private equity buyout.
Headquartered in New York, Jarden is a manufacturer and seller of
consumer products globally and the buyout has broadened its
customer base. Further, Jarden's experience and ongoing growth in
the international market will facilitate Lifoam to further expand
in the industry and maintain market share.
Also, in 2012, American Capital divested its portfolio company -
Aptara Inc. - to iEnergizer Limited for $144 million. Of the
proceeds, American Capital and its associates received $134
million, subject to post-closing adjustments, out of which about
$108 million was solely received by American Capital.
American Capital is a publicly traded private equity firm and
global asset manager. The company directly and through its asset
management business, initiates, underwrites and manages investments
in middle-market private equity, leveraged finance, real estate and
structured products. Since American Capital's 1997 IPO, through the
third quarter of 2012, the company has earned 27% compounded annual
return on the exit of its equity investments, including dividends,
fees and net gains.
The company has the ability to provide flexible financing solutions
ranging from a variety of senior debt and uni-tranche to mezzanine
and equity co-investments. Further, American Capital provides
multi-currency funding with a global underwriting platform and
facilitates the growth of portfolio companies. Such benefits induce
private equity clients to consider it as an investment partner,
which in turn helps the company broaden itself.
American Capital is expected to announce its fourth-quarter results
on Feb 5. The Zacks Consensus Estimate for the quarter is 25 cents
per share on revenue expectation of $148 million.
The earnings ESP (Read: Zacks Earnings ESP: A Better Method) for
the company is a negative 4.00% for the fourth quarter. This, along
with its Zacks Rank #2 (Buy), reduces the chance for a positive
earnings surprise.
Other Zacks Rank #2 (Buy) companies in the same industry include
Hercules Technology Growth Capital, Inc. (HTGC)
and Apollo Investment Corporation (AINV).
AMER CAP LTD (ACAS): Free Stock Analysis Report
APOLLO INV CP (AINV): Free Stock Analysis Report
HERCULES TECH (HTGC): Free Stock Analysis Report
JARDEN CORP (JAH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
American Capital Strategies (NASDAQ:ACAS)
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