American Capital Invests $24 Million in Buyout of Leading Designer, Manufacturer of Specialty Molds & Precision Products
BETHESDA, Md., Oct. 8, 2004 -- American Capital Strategies Ltd. announced today it has invested $24 million in the buyout of Weber Manufacturing Limited ("Weber"), a Midland, Ontario based designer and manufacturer of large-cavity specialty molds and precision products for the automotive, aerospace and building products industries. American Capital's investment takes the form of senior subordinated debt and preferred and common equity. Bank of Nova Scotia is providing a revolving credit facility and a senior term loan. TMB Industries and Weber management are also investing in the equity. American Capital will own approximately 90% of Weber on a fully diluted basis. Mr. Reinhart Weber, founder and former owner of Weber, will continue to serve as a consultant and member of the Weber Board of Directors.
"Our buyout of Weber, a leader in the global mold manufacturing industry, is our 8th buyout in 2004," said American Capital COO Ira Wagner. "Weber's proprietary technology and growth prospects make it an excellent investment opportunity for American Capital. We are pleased to be working again with TMB Industries to take advantage of the numerous market opportunities available to Weber."
American Capital has invested over $1.5 billion in the last twelve months and over $1 billion year to date. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.cfm.
"Weber is the only company known to have successfully commercialized nickel vapor deposition ("NVD") technology for complex, high quality, large cavity molds, and therefore enjoys a significant first mover advantage over its competition," said American Capital Managing Director Tom Gregory. "As NVD processing holds important advantages over traditional electroplating and other mold manufacturing processes, the Company should experience numerous growth opportunities by applying its process to new products and applications as well as increasing its current market penetration. Weber's strong customer relationships, highly scalable business, state of the art facilities and leadership by newly appointed CEO and industry veteran Dave Hoyte position it to grow to its fullest potential. Further, we are pleased to be partnering with TMB, who brings strong management and operating expertise to its investments through its network of seasoned and loyal operating executives."
Founded in 1962, Weber designs and manufactures nickel shell molds, traditional injection and compression steel molds and prototype aluminum molds for international customers in the automotive, heavy duty truck, aerospace and residential housing markets. Weber's steel, aluminum and nickel molds are used for various consumer products such as automotive deck lids and fenders, interior trim and instrument panels, bathtubs, showers, kitchen sinks, front entry doors and aircraft components. The company has five active design and process patents for forming mold cavities from pure nickel using a unique nickel vapor deposition process. The company has two operating facilities in Midland, Ontario and employs over 200.
"With American Capital's strong financial backing and valuable experience in growing manufacturing companies, Weber is better positioned to excel in its business," commented Weber CEO Dave Hoyte.
"We're pleased to invest alongside American Capital and grow our relationship with them in acquiring the recognized leader in NVD technology," said TMB Industries Managing Director Ken Tallering.
For more information about Weber's industry leading nickel vapor deposition technology and high quality molds, go to http://www.acas.com/news/press_releases/pr/pr.cfm?p_pr=pr20041008a.html.
As of September 30, 2004, American Capital shareholders have enjoyed a total return of 291% since the Company's IPO -- an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $583 million in dividends and paid or declared $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $4.2 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored buyouts; and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit our website at http://www.americancapital.com/.
TMB Industries is a private equity investment firm focused on acquiring and managing middle-market industrial companies. TMB has acquired over thirty businesses with total revenues in excess of $2 billion since its inception in 1989. TMB's portfolio of investments include a wide range of industrial markets, with a particular focus on transportation related businesses that have served the automotive, commercial vehicle and railcar markets. In November 2002 American Capital supported TMB's acquisition of Phillips & Temro Industries, a leading supplier of cold start and emission control technology and long haul convenience and comfort technology for both OEM and aftermarket applications for the heavy-duty truck and automotive industries. For more information about the Phillips and Temro transaction, go to http://www.acas.com/our_portfolio/companies/company.cfm?p_comp=79
This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies 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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.