In the third quarter of 2014 the Sponsor Finance Group of American Capital invested approximately $220 million to back new platform and add-on acquisitions made by private equity firms.
“During the third quarter, our Sponsor Finance team not only made six investments in new platform companies, but also provided several incremental investments to support existing portfolio companies,” said Ryan Brauns, American Capital Managing Director and Head of Sponsor Finance.
American Capital is a publicly traded (NASDAQ: ACAS) 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. The firm is headquartered in Bethesda, MD (www.AmericanCapital.com).
Below is a summary of some of the transactions completed by American Capital in the third quarter.
DataPipe: In September, American Capital invested an additional $17 million in a second lien facility in DataPipe to support an add-on acquisition led by ABRY Partners. DataPipe is a provider of outsourced IT services to medium and large size enterprise customers. The company is headquartered in Jersey City, NJ, with additional locations in Europe and Asia (www.datapipe.com)
iParadigms: In August, American Capital invested $27 million in a second lien facility to support the acquisition of iParadigms by Insight Ventures. iParadigms is a provider of cloud-based educational technologies to prevent plagiarism, verify content and evaluate student learning. The company is headquartered in Oakland, CA (www.iparadigms.com).
Cole-Parmer Instrument Company: In August, American Capital invested $25 million in a second lien facility to support the acquisition of Cole-Parmer Instrument Company by GTCR. Cole-Parmer is a manufacturer and distributor of specialty laboratory equipment, instruments and supplies to a range of customers in pharmaceutical, biotech, healthcare, chemicals, food and other research-based or regulated markets. The company is based in the Chicago suburb of Vernon Hills, IL (www.coleparmer.com).
Tectum Holdings: In August, American Capital invested in a second lien facility and equity to support the acquisition of Tectum Holdings by TA Associates. Tectum is a manufacturer of branded light duty truck tonneau covers, bedliners and accessories. The company is headquartered near Detroit in Ann Arbor, MI (www.thicorp.com).
Sparta Systems: In July, American Capital invested $26 million in a unitranche facility and equity to support the acquisition of Sparta Systems by Thoma Bravo. Sparta Systems is a provider of enterprise quality management software solutions, which enable businesses to safely and efficiently deliver their products to market. Sparta Systems is headquartered in Hamilton, NJ and has locations across Europe and Asia (www.spartasystems.com).
Risk & Co.: In July, European Capital invested €35 million in unitranche bonds in Risk & Co., a portfolio company of Latour Capital. The financing enabled Risk & Co. to finance an add-on acquisition as well as future acquisitions. Risk & Co. is a consulting firm providing corporations with security and strategic intelligence, particularly related to foreign operations. The company is headquartered in Paris (www.riskeco.com).
Sausalitos: In July, European Capital invested €10 million in unitranche bonds to support the acquisition of Sausalitos by Ergon Capital Partners. Sausalitos is one of the top five German leisure restaurant chains. The company is headquartered in Munich (www.sausalitos.de).
“As we review investment opportunities in the pipeline for the remainder of 2014 and look ahead to 2015, our experienced professionals in both our US and European offices are prepared to invest capital to support new platform investments and dividend recapitalizations, as well as support the growth of our existing portfolio companies,” said Mr. Brauns.
2014 PEPD • Private Equity’s Leading News Magazine • 10-31-14
