BETHESDA, Md., Feb. 20, 2013 /PRNewswire/ -- American
Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today
that its portfolio company Paradigm Precision Holdings, LLC
("Paradigm Precision") was sold to Dynamic Precision Group, a
portfolio company of The Carlyle Group (NASDAQ: CG), on
January 31, 2013. American
Capital and its affiliated funds have received $129 million in debt and equity proceeds, subject
to post-closing adjustments, of which $127
million was received by American Capital. American
Capital's compounded annual rate of return earned on its senior
debt, subordinated debt and equity investments since the first
quarter of 2007 was 11%, including interest, dividends and fees
earned over the life of its investment.
"American Capital is proud of its role in building Paradigm
Precision into a leader of precision machined aerospace engine
parts," said Myung Yi, Senior Vice
President and Managing Director, American Capital Special
Situations Group. "American Capital has been fortunate to
partner with an outstanding management team, which has driven
Paradigm Precision's growth and successful expansion into global
markets."
"Over the course of our investment, Paradigm built a strong
position in all key and next-generation engine platforms," said
Yaniv Zief, Vice President, American
Capital Special Situations Group. "We believe that Paradigm
Precision is a great addition to Dynamic Precision Group's
business."
Paradigm Precision is a leading and premier global supplier of
precision aerospace components for jet engine manufacturers.
Based in Peabody, Massachusetts
with additional facilities in Malden,
Massachusetts; East Berlin,
Connecticut; Tempe,
Arizona; Guaymas, Mexico,
and; Tunis, Tunisia; Paradigm
Precision is a manufacturer of highly complex, close tolerance
parts and assemblies used mainly in aircraft engine and industrial
gas turbines. In addition to working with all of the major
turbine engine original equipment manufacturers, the company also
supplies parts used in land-based power generation and other
specialty applications.
During the first half of 2007, American Capital and an affiliate
invested in Paradigm Precision for the One Stop Buyouts® of Smith
West Inc. ("Smith West"), Palmer Manufacturing Co. Inc. ("Palmer")
and Eurocast S.A. ("Eurocast"), leading manufacturers of precision
machined aerospace engine components. In addition, in
September 2008, American Capital
invested in Paradigm Precision to support the acquisition of TM
Industries, Inc., a high-precision machining company that
specializes in machining large size, highly technical parts for
customers in the aerospace, power generation, oil and gas and
defense markets. For more information on American Capital's
investment in Paradigm Precision, please go to
www.americancapital.com/Pages/our_portfolio/companies/paradigm_precision_holdings.aspx.
Since American Capital's 1997 IPO through the fourth quarter of
2012, the company has earned a 10% compounded annual return,
including interest, dividends, fees and net gains, on over 340
realizations of senior debt, subordinated debt, equity and
structured products investments, totaling $18 billion of committed capital. American
Capital earned a 27% 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/Pages/our_portfolio/exited.aspx.
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 $117 billion of total
assets under management (including levered assets). American
Capital, through a wholly-owned portfolio company, 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 $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: (301) 951-6122
Myung
Yi, Senior Vice President and Managing Director, Special
Situations Group
Yaniv Zief, Vice President, Special
Situations Group
SOURCE American Capital, Ltd.