On Monday, American Capital Ltd. ( ACAS ) declared its
investment in the One Stop Buyout of Service Experts, LLC. The deal
was conducted by Special Situations Group, a unit of American
Capital. The company invested in the form of preferred and common
equity and a revolving credit facility. However, financial terms of
the deal were not disclosed.AMER CAP LTD (ACAS): Free Stock Analysis ReportHERCULES TECH (HTGC): Free Stock Analysis
ReportKCAP FINL INC (KCAP): Free Stock Analysis
ReportMEDALLION FINL (TAXI): 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 Richardson, Texas, Service Experts provides complete HVAC
services, including maintenance, inspections, sales and equipment
installation of heating and air conditioning and cooling systems.
Moreover, Service Experts provides indoor air quality solutions
along with energy-saving green solutions. The company operates
through 108 branches in the U.S. and Canada and records about $385
million in annual sales.
Therefore, the deal with Service Experts is expected to be a
strategic fit for American Capital as the company will be armed
with a large infrastructure. Moreover, combined with American
Capital's industry expertise, commendable operational and marketing
skills, Service Experts aims to expand its existing national
customer base. Additionally, the company expects to offer a broad
range of products and grow revenue both organically and through
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 itself.
Currently, American Capital retains a Zacks Rank #2 (Buy). Among
peers, companies in the same industry with Zacks Rank #2 include
Medallion Financial Corp. ( TAXI ),
Hercules Technology Growth Capital Inc. ( HTGC ) and
KCAP Financial Inc. ( KCAP ).