American Capital Ltd.
) declared its investment of $89 million, committed in Dec 2012,
in the One Stop Buyout of ASAP Industries, LLC. The deal was
conducted by American Capital Energy and Infrastructure Group, a
unit of American Capital. The company invested in the form of
senior debt, subordinated debt and equity.
AMER CAP LTD (ACAS): Free Stock Analysis
ICG GROUP INC (ICGE): Free Stock Analysis
KCAP FINL INC (KCAP): Free Stock Analysis
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American Capital anticipates the deal to be accretive based on
its returns and expects to continue seeking new One-Stop Buyout
opportunities or supporting private equity buyout.
Based in Houma, La., ASAP leads the Gulf Coast region in
providing high-pressure flow control products world-wide for the
oil and gas industry. Additionally, the company acts as a partner
for original equipment manufacturers, oilfield service companies
and equipment rental companies throughout the U.S. Moreover, ASAP
provides products to small local operations to major oilfield
services companies and original equipment manufacturers.
Therefore, the deal with ASAP will be a strategic fit for
American Capital as the company's portfolio of domestic
mid-market energy-related companies will be expanded and
benefited from the deep-rooted customer relations and huge
organic growth opportunities of ASAP. Notably, since the
inception of American Capital Energy and Infrastructure Group in
2005, the unit has invested about $620 million in domestic
mid-market energy-related companies.
American Capital 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, the company
provides multi-currency funding with underwriting platform
globally and facilitates the growth of portfolio companies. Such
benefits induce private equity clients to consider it as an
investment partner, which in turn helps the company broaden
Among peers, companies in the same industry with Zacks Rank #1
(Strong Buy) include
Medallion Financial Corp.
ICG Group Inc.
KCAP Financial Inc.