American Capital Ltd.
) announced the divesture of its portfolio company CIBT Solutions
Inc. (CIBT). The unit was acquired by ABRY Partnersin mid-December
2011 for $215 million.
CIBT leads globally in providing advanced travel document
processing services. Operating in North America, Europe and
Asia, the company provides services to multinational corporations,
global travel management companies, tour and cruise operators,
government agencies and Do-It-Yourself travelers. Additionally, it
aids approximately one million travelers annually to obtain
short-term visas, passports and other documents for business travel
In May 2006, ACAS made debt investment in CIBT for supporting
Audax Group's acquisition of CIBT. Later on, in January 2008, the
company acquired CIBT from Audax through a One-Stop Buyout.
ACAS has earned 15% compounded annual rate of return over the
life of its total debt and equity investments, including interest,
dividends fees and expected escrow proceeds. However, the
proceeds were below the third-quarter 2011 valuation of ACAS's
investment by $2 million or 1%.
Despite economic downturn, CIBT expanded globally, growing both
organically and through an active acquisition program. The
company's market position has helped ACAS to sell it off at a very
good price. ACAS considers the deal to be positive for the company
and expects to continue to seek new One-Stop Buyout opportunities
of up to $300 million. The company will also look for lending
opportunities from $10 million to $100 million. However, ACAS
retained its equity interest in CIBT.
North America-based ABRY Partners, who has bought CIBT, is an
experienced and successful media, communications, business and
information service providers, which mainly focusing on private
equity investment firms. The firm invests in high quality companies
and associates with management to help build their businesses.
Since its inception, ABRY has completed over $27.0 billion of
leveraged transactions and other private equity, mezzanine or
preferred equity placements, representing investments in
approximately 450 properties.
ABRY's experience and ongoing growth in international travel
market will facilitate CIBT to further grow in the industry and
maintain market share. Additionally, the acquisition will help ABRY
in its strategic objective of maximizing the value of investments
by concentrating on businesses where it has substantial operating
and investment experience.
Back in September 2011, ACAS announced the divesture of its
portfolio company VP Acquisition Holdings Inc. (Value Plastics).
The unit was acquired by
) in August 2011 for $250 million.
Out of the proceeds, ACAS received $138 million and realized a
gain of $93 million during the third quarter of 2011, subject to
post-closing adjustments. Moreover, including investments by ACAS's
associated funds under management in Value Plastics, the proceeds
totaled $222 million and gain totaled $157 million for ACAS.
Moreover, in November 2011, ACAS has announced an investment of
$10 million in order to support RBC Capital Markets Corp.'s
syndication of $75 million Second Lien Term Loan financing,
followed by its plan to invest $15 million to support BMO Capital
Markets' syndication of $100 million Second Lien Term Loan
financing, which helped Teachers' Private Capital to purchase
majority stakes of Flexera Software Inc in October.
In August also, ACAS supported the merger of Survey Sampling
International and Opinionology Inc. through mezzanine financing.
The company provided $50 million of Senior Subordinated Note
financing for the deal.
ACAS is a publicly traded private equity firm and global asset
manager. It directly and through its asset management business,
initiates, underwrites and manages investments in middle market
private equity, leveraged finance, real estate and structured
The company has the capability to provide flexible financing
solutions ranging from a variety of senior debt and uni-tranche to
mezzanine and equity co-investments. Further, ACAS provides
multi-currency funding with underwriting platform globally and
facilitates the growth of portfolio companies. Such benefits
provided by the company urge private equity clients to consider it
as an investment partner, which in turn helps in the growth of the
ACAS currently retains its Zacks #3 rank, which translates into
a short-term 'Hold' rating. Considering the fundamentals, we are
maintaining our long-term 'Neutral' recommendation on the
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