Thursday, January 17, 2013

ACAS Back At Bat

Following the Seeking Alpha article on Normalcy Returning to American Capital, the article American Capital: Back In The Business-Building Business outlines ACAS' post-refinancing use of its revolving credit to do deals in December. The article mentions these deals:
 American Capital Commits $212 Million In The One Stop Buyout® Of Cambridge Major Laboratories, Inc.
 American Capital's Portfolio Company Potpourri Group Acquires Cuddledown
 American Capital Invests in The Meadows to Support Add-on Acquisition of Remuda Ranch
 American Capital And Its Affiliates Invest $10.7 Million In Portfolio Company Halt Medical

And it didn't even cite all the deals.  In addition to the multiple deals cited above that closed in December, ACAS also closed this:
 American Capital's Portfolio Company Pan Am International Flight Academy Acquires Airline Career Academy

As a bonus, ACAS exited Lifoam Holdings for an 11% compounded annual return over the life of the investment. Interestingly, there wasn't much of a breakdown on that investment's components. The last quarterly report gave ACAS' Lifoam holdings as having a basis of $45.5 million (of which $30.3m was equity, the rest 14% mezzanine debt) and a fair value of $53.9 million. ACAS' realization – based on the press release – was $60 million. Some of the $71 million initial investment was no doubt sold years ago to managed funds which bought a non-control fractional stake in ACAS' holdings, reducing ACAS' basis in its remaining stake to the reported $45.5 million.

If December is any guide, ACAS is back in business.

1 comment:

Anonymous said...

Talk about a phoenix rising from the ashes! I never expected them to actually get business back on track. They have a better asset blend now then they did when they were paying a dividend.