American Capital has sold its portfolio company Avalon Laboratories to Nordson Corporation for $180 million. Over the life of its investment, American Capital realized a compounded annual rate of return of 19% on its equity investment, including dividends and fees. The investment in Avalon Laboratories was made through American Capital Equity III, LP (ACE III) in January 2008.
“We are extremely pleased with the results of our investment in Avalon, which is the first exit for ACE III,” said Eugene Krichevsky, Partner, American Capital Equity Management. “Avalon generated strong financial performance during our hold period, with double digit annual revenue and EBITDA growth despite the global recession.”
Avalon is a designer and manufacturer of highly-specialized, single-use catheters and specialty medical tubing products for cardiology, pulmonology and related applications. The company serves OEM customers in the cardiology, pulmonology, endovascular, bariatrics, tracheostomy, endoscopy, non-vascular stent and ophthalmic markets segments. Avalon was founded in 1990 and is headquartered south of Los Angeles in Rancho Dominguez, CA (www.avalonlabs.com).
“Our investment in Avalon is an excellent example of our focus on providing founders of lower middle market companies with both liquidity and a strong partner post-closing to ensure continued success,” said Ryan Sacco, Vice President, American Capital Equity Management. “We worked closely with Avalon’s management team to provide strategic support and guidance as the company expanded its product offering into adjacent markets, acquired new customers and enhanced its manufacturing capabilities.”
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).
“I’ve thoroughly enjoyed partnering with the American Capital team and appreciate their support for our various strategic and operational initiatives,” said Avalon CEO, Mike Janish. “I look forward to leveraging Nordson’s global footprint, complementary product lines and operational know-how in the next phase of Avalon’s growth.”
Nordson Corporation (NASDAQ: NDSN) designs and manufactures dispensing equipment for consumer and industrial adhesives, sealants and coatings. The company is based in Westlake, OH (www.nordson.com).
2014 PEPD • Private Equity’s Leading News Magazine • 10-3-14