At the end of November 2015 American Capital (ACAS) hired Goldman Sachs and Credit Suisse to assist the company in undertaking a strategic review of all corporate finance alternatives. The review considered all alternatives for maximizing shareholder value, including a sale of the entire company or a sale of various business lines.
Last week the strategic review was completed and the Board of Directors of American Capital has now authorized the company to proceed with the solicitation of offers to purchase all of ACAS or any of its business lines.
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 and structured products.
An independent committee of the American Capital board members – consisting of Neil Hahl, Kristen Manos, Kenneth Peterson and David Richards – were responsible for overseeing the review process. Goldman Sachs and Credit Suisse will continue to assist ACAS in this new phase.
“The management team recommended and fully supports the decision by the Board to proceed with the solicitation of offers and believes that it is in the best interests of our shareholders,” said Malon Wilkus, American Capital Chairman and Chief Executive Officer. “Our business lines and assets have tremendous value, which is not reflected in our current share price, and we believe these actions will help realize that value. We are working closely with our advisors to maximize shareholder value.”
“The strategic review process has included an extensive consideration of various means of maximizing shareholder value,” said Mr. Hahl, Chair of the independent review committee. “After careful consideration, the Board unanimously concluded that soliciting proposals at this time provides the best and most expedient path to unlock shareholder value. The Board has asked the independent review committee to continue working with our advisors, to report to the full Board and to make further recommendations as the strategic review process continues.”
Founded in 1986, American Capital has $80 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-11-16
