European Capital and American Capital Receive Proceeds of EUR 91.4 Million from Delsey and Invest an Additional EUR 7.8 Million in Mezzanine Bonds to Support the Company's Future Growth
PARIS, Nov. 17, 2015 /PRNewswire/ -- European Capital Limited and its affiliates ("European Capital") and American Capital, Ltd. (Nasdaq: ACAS) announced today that they have received total proceeds of €91.4 million from exiting their unitranche investments in Delsey (the "Company"). European Capital and American Capital also announced that they have invested an additional €7.8 million in subordinated mezzanine bonds to support the Company's refinancing and future growth.
In February 2007, European Capital invested €120 million in the unitranche facility put in place to support the acquisition of Delsey. At that time, it was the first European mid-market transaction to combine the traditional senior debt and mezzanine facility to offer a one-stop financing solution to the sponsor with a single lender and an attractive interest rate. European Capital's partial exit comes as Delsey's majority shareholders, Argan Capital and Partners Group on behalf of its clients, decided to refinance 100% of the unitranche bonds to further pursue the Company's growth strategy implemented over the past years, in particular through geographic expansion and penetration of new distribution channels.
Founded in 1946, Delsey is now one of the top four leading global luggage brands, with products sold in more than 100 countries. The Company focuses on product design, marketing and sales of high quality travel luggage and travel accessories. With its French roots and consistent innovation, the Delsey brand and its full range of hard and soft-sided travel luggage are sold worldwide through a strong network of distributors as well as direct sales via internet and Company-owned retail stores.
Etienne Haubold, Managing Director at European Capital, stated, "We are pleased to announce the refinancing of the first unitranche facility provided in Europe, which yielded a very positive outcome for European Capital. This investment illustrates our ability and strategy to provide flexible financing solutions."
Kevin Abrial, Director at European Capital, added, "European Capital proved to be a longstanding partner of the Company and we are pleased to accompany Delsey's future growth through this new commitment."
ABOUT EUROPEAN CAPITAL LIMITED
European Capital, both directly and through its asset management business, invests in pan-European equity, mezzanine and senior debt investments. European Capital is a wholly-owned affiliate of American Capital, Ltd. (Nasdaq: ACAS). European Capital manages €0.9 billion of assets.
European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and public companies headquartered predominantly in Europe. European Capital will consider senior, mezzanine, subordinated and unitranche debt investment opportunities from 10 million to 100 million in either euros or sterling and up to 300 million One Stop Buyouts®. For further information, please refer to www.EuropeanCapital.com.
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 $23 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $80 billion of total assets under management (including levered assets). Through a wholly-owned 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 $10 billion of total net book value. From its eight offices in the U.S., Europe and Asia, American Capital and its wholly-owned affiliate, European Capital, will consider investment opportunities from $10 million to $600 million. For further information, please refer to www.AmericanCapital.com.
Contact: European Capital Financial Services, Paris Branch + 33 1 40 68 06 66
Etienne Haubold, Managing Director
Kevin Abrial, Director
SOURCE American Capital, Ltd.; European Capital Limited
Share this article