American Capital has had a busy first half of 2014. For the first six months of this year the firm, along with its affiliate European Capital, has invested over $225 million in seven new portfolio companies.
The seven new investments were led by American Capital and European Capital offices in the United States and Europe and were made in support of private equity firms’ company buyouts, add-on acquisitions and dividend recapitalizations.
“During the first half of 2014, we partnered with top private equity firms to invest in leading middle market companies with dynamic growth opportunities,” said Ryan Brauns, American Capital Managing Director and Head of Sponsor Finance. “With our seasoned investment professionals in the United States and Europe, flexible capital, wide-ranging financing capabilities and streamlined underwriting process, we are able to move quickly and execute on commitments. We are looking forward to an active remainder of the year investing in attractive acquisitions, capital structure refinancings and corporate growth initiatives with our partners as well as building new relationships within the sponsor community.”
Here is a summary of the seven investments made by American Capital in the first half of 2014.
Wencor: In June, American Capital invested $25 million in a second lien facility to support the acquisition of Wencor by Warburg Pincus. Wencor is a manufacturer and distributor of aftermarket aerospace components for the commercial aerospace, business, military and general aviation markets. The company is headquartered near Provo in Springville, UT (www.wencor.com).
Groupe Poult: In June, European Capital invested €13 million in mezzanine bonds to support the acquisition of Groupe Poult by Qualium Investissement. Poult is a French private label manufacturer of sweet biscuits. Poult customers include large mass retail and hard discount chains in France. The company was founded in 1883 and is headquartered in Toulouse, France (www.groupe-poult.com).
Luminator Technology Group: In April, American Capital committed $71 million in a second lien term loan, committed delayed draw facility and common equity to support the acquisition of Luminator Technology Group by Audax Group. Luminator is a designer and manufacturer of display, lighting and passenger communication systems for the global mass transportation market. Luminator serves OEMs and operators in the city bus, rail and aerospace markets worldwide. Luminator is based in Plano, TX and has affiliated operations in Brazil, Denmark, Sweden, Germany, and Australia (www.luminatortechnologygroup.com).
Tectum Holdings: In March, American Capital invested $25 million in a second lien facility to support an add-on acquisition and dividend recapitalization of Tectum by Kinderhook Industries. Tectum is a manufacturer of branded light duty truck tonneau covers, bedliners and accessories. THI’s brands include Extang (www.extang.com), Truxedo (www.truxedo.com), Undercover Advantage (www.undercoverinfo.com), Retrax (www.retrax.com), BedRug (www.bedrug.com) and BAK Industries (bakindustries.com). The company is headquartered in Ann Arbor, MI (www.thicorp.com).
LANDesk Software: In February, American Capital invested $9 million in a second lien facility to support the dividend recapitalization of LANDesk Software by Thoma Bravo. LANDesk is a provider of software for IT departments and systems management and serves a base of over 12,000 customers, including Fortune 500 and small and medium businesses. LANDesk is headquartered near Salt Lake City in South Jordan, UT with additional offices in Europe, Latin America, Asia and the Middle East (www.landesk.com).
Inmar: In January, American Capital invested $20 million in a second lien facility to support the acquisition of Inmar by ABRY Partners. Inmar is a provider of logistics management services to companies in the consumer goods and healthcare markets. Customers include retailers, grocers, consumer packaged goods companies and manufacturers. The company was founded in 1980 and is based in Winston-Salem, NC (www.inmar.com).
Asmodee: In January, European Capital invested €42.5 million in unitranche bonds and an equity co-investment to support the acquisition of Asmodee by Eurazeo Capital. Asmodee is a publisher and distributor of games and trading cards in Europe with its main operations in France, the UK, Belgium, the US, Germany and Spain. Asmodee pioneered the development of modern social games and captured most of the bestselling board and card games in France over the last 15 years, including Dobble, Jungle Speed and Time’s Up (us.asmodee.com)
American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in lower and middle market private equity, leveraged finance, real estate, energy & infrastructure and structured products. From its eight offices in the US and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. American Capital was founded in 1986 and has $84 billion in total assets under management. The firm is headquartered in Bethesda (www.AmericanCapital.com).
European Capital, wholly-owned by American Capital, makes equity, mezzanine and senior debt investments from 10 million to 400 million in either Euros or Sterling. European Capital, with €800 million in assets under management, has offices in London and Paris with 55 employees (www.europeancapital.com).
2014 PEPD • Private Equity’s Leading News Magazine • 7-29-14