American Capital Receives $108 Million in Proceeds from Sale of Aptara and Generates a 17% Annual Return on Its Investment

BETHESDA, Md., Feb. 16, 2012 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) announced today that its portfolio company Aptara, Inc. ("Aptara") was sold to iEnergizer (AIM: IBPO) for $144 million on February 7.  American Capital and its affiliated funds received $134 million in proceeds, subject to post-closing adjustments, of which approximately $108 million was received by American Capital.  American Capital's compounded annual rate of return earned over the life of its total senior, mezzanine debt and equity investments was 17%, including interest, dividends, and fees. 

"We are extremely delighted with the results of our first exit of 2012," said Brian Graff, American Capital Senior Managing Director.  "Our six year investment in Aptara has resulted in an attractive return for American Capital and its shareholders. We continue to search for new investment opportunities to put capital to work in a variety of industries, either as the sole investor in a One Stop Buyout® or with a sponsor in support of a private equity buyout."  

Serving nine of the ten largest publishers in the world, Aptara is a Falls Church, VA based company that enriches content for capitalizing on all digital mediums.  Aptara's services -- from content creation and design, to new media enhancements, technology solutions and production for all mobile devices and platforms -- help content providers effectively leverage their assets in the digital age.

"Since our initial investment and with continued support from American Capital, Aptara has achieved strong financial performance," said Eugene Krichevsky, American Capital Principal, Buyouts Group.  "We have been fortunate to partner with an exceptional senior management team, which has driven significant growth and value creation despite the global recession.  CEO Dev Ganesan and his team have positioned Aptara as the leader in the rapidly expanding digital publishing and content transformation industry, providing enhanced value-added services to its customers and expanding into new market verticals."

"Based in the U.S. and with nearly 5,000 employees, Aptara has capitalized on the fastest growing segments in the outsourced content management industry," said Sean Reid, American Capital Vice President, Buyouts Group.  "The company remains well positioned for continued growth, given that the proliferation of eBooks and digitization has just begun." 

American Capital first invested in Aptara in August 2005, supporting Aptara's recapitalization with $45 million in senior and junior subordinated debt and convertible preferred equity.  Subsequent to the initial investment, American Capital and its affiliates made additional investments in Aptara totaling $50 million to support its growth.  For more information about American Capital's investment in Aptara, please go to http://www.americancapital.com/our_portfolio/companies/aptara.html.

Since American Capital's 1997 IPO through the fourth quarter of 2011, the company has earned an 11% compounded annual return, including interest, dividends, fees and net gains, on 326 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $17 billion of committed capital.  American Capital earned a 29% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.

For a chart showing a partial listing of American Capital's exited portfolio companies, please go to http://www.americancapital.com/our_portfolio/exited.html.  

ABOUT AMERICAN CAPITAL 
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $68 billion in assets under management and seven offices in the U.S. and Europe. American Capital and European Capital will consider investment opportunities from $10 million to $300 million. For further information, please refer to www.americancapital.com 

This press release contains forward-looking statements. The statements regarding expected results of American Capital 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, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments. 

CONTACT:
Eugene Krichevsky, Principal, Buyouts Group (301) 951-6122
Sean Reid, Vice President, Buyouts Group (301) 951-6122

SOURCE American Capital, Ltd.



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