BETHESDA, Md., May 5, 2014 /PRNewswire/ -- American Capital,
Ltd. (Nasdaq: ACAS) ("American Capital") announced today that its
portfolio company BCCK Holdings, Inc., parent to Specialty Brands
of America, Inc. (collectively "SBA" or the "Company"), was sold to
B&G Foods (NYSE: BGS), a manufacturer, marketer and distributor
of high-quality, branded shelf-stable foods. American Capital
and its affiliated funds received $93
million in equity proceeds and realized a gain of
$60 million from the transaction,
subject to post-closing adjustments. Of the total proceeds,
American Capital received $54 million
in equity proceeds, realizing a gain of $35
million from the transaction, subject to post-closing
adjustments. American Capital also recognized $20 million of dividend income and additional
realized gains over the life of its investment. American
Capital's compounded annual rate of return earned on its debt and
equity securities over the life of its investment was 17%,
including interest, realized gains and fees. American Capital
received 2.2 times its equity investment, and realized a compounded
annual rate of return of 19% over the life of its equity
investment, including dividends and fees. Evercore acted as
exclusive financial advisor to American Capital on the
transaction.
"We are delighted with the results of our investment in SBA and
proud of how the Company excelled throughout our investment and
solidified its leading position within the packaged foods
industry," said Brian Graff,
American Capital Senior Managing Director. "Our investment in
SBA is an excellent example of American Capital's One Stop Buyout®
strategy of investing in middle market companies with strong market
positions and partnering with management teams to enhance
performance, grow operations and create value."
SBA is a leading packaged foods company with a portfolio of
strong and differentiated brands. SBA's largest brand is Bear
Creek Country Kitchens ("Bear Creek"). Bear Creek is the
leading brand of hearty dry soups in the
United States and also offers a line of savory pasta dishes
and hearty rice dishes. SBA is also a leading marketer of
maple syrup and sugar free syrups worldwide, with the Spring Tree®
and Cary's® brands. The Company's brands also include New
York Flatbreads and Canoleo margarine.
"Since our initial investment in 2003, we helped SBA achieve
significant growth through acquisitions, new product launches
and existing product enhancements," said Jim Gregory, American Capital Principal, Buyouts
Group. "We are pleased to have supported SBA's successful
acquisition and integration of Bear Creek in 2005, which resulted
in a new suite of nationally known food products as well as
significant operational synergies. SBA owns leading brands in
the pure maple syrup, sugar free table syrup and hearty dry soups
categories and we believe it is a direct fit for B&G Foods'
family of top brands."
Dom Bastien, SBA Founder and Chief Executive Officer said, "Our
close working relationship with American Capital allowed us to
significantly invest in our business to drive growth. We
worked together to expand our product offering, enhance
distribution efficiencies and ultimately increase our
profitability. They understood our strategic vision for SBA
and our products and together worked with us to advance SBA and as
such, we are poised for even more growth under B&G Foods'
leadership."
American Capital invested $68
million in the One Stop Buyout® of SBA in December 2003. American Capital's investment took
the form of a revolving credit facility, senior term debt, senior
and junior subordinated debt, redeemable preferred stock and common
equity. In May 2005, American
Capital invested an additional $55
million in a revolving credit facility, senior term loans,
senior and junior subordinated debt and convertible preferred
equity to support SBA's acquisition of Bear Creek. For more
information on American Capital's investment, visit
http://www.americancapital.com/our-portfolio/specialty-brands-america-inc.
Since American Capital's 1997 IPO through the fourth quarter of
2013, it has earned a 10% compounded annual return, including
interest, dividends, fees and net gains, on over 370 realizations
of senior debt, subordinated debt, equity and structured products
investments, totaling $20 billion of
committed capital. American Capital earned a 24% compounded
annual return on the exit of its equity investments, including
dividends, fees and net gains. For a chart showing a partial
listing of American Capital's exited portfolio companies, please go
to
http://www.americancapital.com/our-portfolio/exited-companies.
ABOUT AMERICAN CAPITAL
American Capital, Ltd.
(Nasdaq: ACAS) 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, energy & infrastructure and structured
products. American Capital manages $19
billion of assets, including assets on its balance sheet and
fee earning assets under management by affiliated managers, with
$93 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 $9
billion of net book value, American Capital Mortgage
Investment Corp. (Nasdaq: MTGE) with approximately $1 billion of net book value and American Capital
Senior Floating, Ltd. (Nasdaq: ACSF). 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
$750 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.
Contact: (212) 213-2009
Brian Graff, Senior Managing
Director
Jim Gregory, Principal, Buyouts
Group
SOURCE American Capital, Ltd.