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:
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.
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