American Capital Announces the Sale of Avalon Laboratories

BETHESDA, Md., Oct. 2, 2014 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") and its affiliated fund, American Capital Equity III, LP ("ACE III"), announced today that their portfolio company Avalon Laboratories Holding Corp. ("Avalon" or the "Company) was sold to Nordson Corporation (Nasdaq: NDSN), the world's leading precision fluid dispensing systems manufacturer, for $180 million.  Over the life of its investment, American Capital realized a compounded annual rate of return of 19% on its equity investment, including dividends and fees.   

"We are extremely pleased with the results of our investment in Avalon, which is the first exit for ACE III," said Eugene Krichevsky, Partner, American Capital Equity Management.  "Avalon generated strong financial performance during our hold period, with double digit annual revenue and EBITDA growth despite the global recession.  Led by a talented management team dedicated to innovation, the Company has become the leading supplier of complex medical tubing products for the cardiology and pulmonology market segments."

"Our investment in Avalon is an excellent example of our focus on providing founders of lower middle market companies with both liquidity and a strong partner post-closing to ensure continued success," said Ryan Sacco, Vice President, American Capital Equity Management.  "We worked closely with Avalon's management team to provide strategic support and guidance as the Company expanded its product offering into adjacent markets, acquired new customers and enhanced its manufacturing capabilities."

"I've thoroughly enjoyed partnering with the American Capital team and appreciate their support for our various strategic and operational initiatives," added Avalon CEO, Mike Janish.  "I look forward to leveraging Nordson's global footprint, complementary product lines and operational know-how in the next phase of Avalon's growth."

Avalon is a leading designer and manufacturer of highly-specialized, single-use catheters and specialty medical tubing products for cardiology, pulmonology and related applications.  Avalon's devices are life-critical components that provide connections between patients and life support machines.  The Company serves OEM customers in the cardiology, pulmonology, endovascular, bariatrics, tracheostomy, endoscopy, non-vascular stent and ophthalmic markets segments.  Avalon is headquartered in Los Angeles, CA and has a FDA and ISO 13485 registered manufacturing facility in Guaymas, Mexico.  For more information on American Capital's investment, visit www.americancapital.com/our-portfolio/avalon-laboratories-inc.

Since American Capital's 1997 IPO through the second quarter of 2014, it has earned a 10% compounded annual return, including interest, dividends, fees and net gains, on over 380 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $20 billion of committed capital.  American Capital earned a 23% 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-companies.

ABOUT AMERICAN CAPITAL EQUITY III, LP
American Capital Equity III, LP is a $1.1 billion private equity fund ("ACE III") focused on investing in companies in the lower middle market.  In addition to managing a secondary portfolio of equity investments acquired from American Capital, ACE III has a $445 million capital commitment to fund the purchase of new control equity and equity-related investments in companies with $5 to $25 million of EBITDA.  ACE III is managed by an affiliate of American Capital Asset Management, LLC, including ten investment professionals based in Bethesda, MD.  For more information, click here.     

ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) 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, energy & infrastructure and structured products.  American Capital manages $19 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $83 billion of total assets under management (including levered assets).  Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $11 billion of total net book value.   From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 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: (301) 951-6122
Eugene Krichevsky, Partner, American Capital Equity Management
Justin DuFour, Partner, American Capital Equity Management
Ryan Sacco, Vice President, American Capital Equity Management

SOURCE American Capital, Ltd.