American Capital Commits $89 Million In The One Stop Buyout® Of ASAP Industries
by PR Newswire
BETHESDA, Md., Feb. 8, 2013 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that in December 2012, it committed $89 million in the One Stop Buyout® of ASAP Industries, LLC ("ASAP" or the "Company") in a transaction led by Kevin W. Kuykendall, former Managing Director of the American Capital Energy Group, and Miles Arnone, an American Capital Managing Director, under the leadership of Darin Winn, Senior Vice President and Senior Managing Director, American Capital. ASAP, a leading independent manufacturer and refurbisher of high-pressure flow control products for the global oil and gas industry, expands the American Capital Energy and Infrastructure Group's portfolio of domestic mid-market energy-related companies. American Capital's investment took the form of senior debt, subordinated debt and equity.
Based in Houma, Louisiana, ASAP manufactures a wide variety of flow control products for companies ranging from small local operations to major oilfield services companies and original equipment manufacturers. The Company's products are used in numerous applications including onshore and offshore projects, crude oil and natural gas wells and drilling, completion and production applications.
"With its broad product lineup, leading position in the Gulf Coast region, strong reputation, well-established customer relationships and significant organic growth opportunities, ASAP is an excellent fit for the American Capital Energy and Infrastructure Group," said Mr. Winn. "ASAP is one of the largest manufacturers of high-pressure flow control components in the Gulf Coast region and a respected partner for original equipment manufacturers, oilfield service companies, and equipment rental companies throughout the United States. The Company is also one of the largest API‑certified independent manufacturers of oil and gas equipment."
"Since its start in 2001, ASAP has demonstrated strong financial performance, achieving consistent year-over-year revenue and EBITDA growth and has shown a unique resiliency to industry downturns," said Mr. Arnone. "Demand for the Company's flow control products is driven by increased drilling and completion activity as well as increasing well complexity. We expect these industry drivers to remain favorable, providing ASAP with a clear and exciting growth path."
The American Capital Energy and Infrastructure Group is headed by Paul Hanrahan, who joined American Capital in 2012 after serving as the President and CEO of The AES Corporation ("AES"), a Fortune 150 global power company, from 2002 through 2011. Since its formation in 2005, the American Capital Energy and Infrastructure Group has invested over $620 million in domestic mid-market energy-related companies. For more information about the American Capital Energy and Infrastructure Group's domestic energy-related investing, visit www.americancapital.com/energy. In connection with Mr. Hanrahan joining American Capital, it announced an initiative to make investments in global energy infrastructure assets, including power generation facilities, power distribution and transmission networks, energy transportation assets and fuel production opportunities and has committed $200 million to such investments.
American Capital and its affiliated funds have invested approximately $31 billion in over 540 portfolio companies both directly and in support of leading financial partners in change of control transactions.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $118 billion of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with approximately $10 billion market capitalization and American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately $850 million market capitalization. From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $500 million. For further information, please refer to www.AmericanCapital.com.
This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
Darin Winn, Senior Vice President and Senior Managing Director, American Capital
Two Bethesda Metro Center
Bethesda MD 20814
(301) 654-6714 Fax
SOURCE American Capital, Ltd.