American Capital Ltd.
) announced the divesture of its portfolio company, Lifoam
) acquired the unit in December 2012 for $60 million.
Headquartered in US, Lifoam leads the market in providing
expandable polystyrene (EPS) and polyurethane (PUR) products.
Lifoam's products include foam picnic coolers, reusable ice and
freeze packs and sophisticated protective and thermal packaging
products. The company provides products for consumer, healthcare
and commercial applications.
Of the proceeds, American Capital received $60 million in debt
and equity proceeds and earned $14 million, subject to
post-closing adjustments. The company has earned 11% compounded
annual rate of return on its debt and equity securities over the
life of its investment, including interest, dividends, capital
gains and fees.
Despite the economic downturn, Lifoam recorded strong and steady
growth in earnings. With the support of American Capital, Lifoam
is well positioned for continued growth in the future, attributed
to its strengthening foothold in the attractive healthcare cold
chain packaging market.
American Capital anticipates the deal to be accretive based on
its returns from the sale and expects to continue seeking new
One-Stop Buyout opportunities or supporting private equity
Headquartered in New York, Jarden is a manufacturer and seller of
consumer products globally and the buyout has broadened its
customer base. Further, Jarden's experience and ongoing growth in
the international market will facilitate Lifoam to further expand
in the industry and maintain market share.
Also, in 2012, American Capital divested its portfolio company -
Aptara Inc. - to iEnergizer Limited for $144 million. Of the
proceeds, American Capital and its associates received $134
million, subject to post-closing adjustments, out of which about
$108 million was solely received by American Capital.
American Capital is a publicly traded private equity firm and
global asset manager. The company directly and through its asset
management business, initiates, underwrites and manages
investments in middle-market private equity, leveraged finance,
real estate and structured products. Since American Capital's
1997 IPO, through the third quarter of 2012, the company has
earned 27% compounded annual return on the exit of its equity
investments, including dividends, fees and net gains.
The company has the ability to provide flexible financing
solutions ranging from a variety of senior debt and uni-tranche
to mezzanine and equity co-investments. Further, American Capital
provides multi-currency funding with a global underwriting
platform 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
American Capital is expected to announce its fourth-quarter
results on Feb 5. The Zacks Consensus Estimate for the quarter is
25 cents per share on revenue expectation of $148 million.
The earnings ESP (Read: Zacks Earnings ESP: A Better Method) for
the company is a negative 4.00% for the fourth quarter. This,
along with its Zacks Rank #2 (Buy), reduces the chance for a
positive earnings surprise.
Other Zacks Rank #2 (Buy) companies in the same industry include
Hercules Technology Growth Capital, Inc.
Apollo Investment Corporation
AMER CAP LTD (ACAS): Free Stock Analysis
APOLLO INV CP (AINV): Free Stock Analysis
HERCULES TECH (HTGC): Free Stock Analysis
JARDEN CORP (JAH): Free Stock Analysis Report
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