European Capital Receives Proceeds of euro 131 Million From the Spotless Group Exit

ST. PETER PORT, Guernsey, April 28 /PRNewswire-FirstCall/ -- European Capital Limited ("European Capital") announced today that it has received proceeds of euro 131 million from the exit of the Spotless Group.

Created in 2005, Spotless Group is a pan-European group of top household care brands that was majority owned by AXA Private Equity and employs approximately 300 people.  In November 2005, European Capital initially provided euro 35 million to support AXA Private Equity's buyout of Eau Ecarlate, a supplier of branded fabric and home care products to the French retail market.  European Capital's investment took the form of mezzanine bonds and equity.  Subsequent to this initial investment, European Capital invested an additional euro 63 million in mezzanine bonds and equity to support several add-on acquisitions by Spotless Group: the Household Products Division of Guaber, a supplier of branded fabric, insecticides and home care products in the Italian market, Punch Industries Group, an Irish manufacturer of fabric, shoe and home care products, Eparcyl, a French provider of branded biological activators for septic tanks and Dylon, a UK provider of branded fabric dyes.

In April 2010, funds advised by BC Partners purchased Spotless Group.  This purchase led to the repayment of European Capital's mezzanine bonds and to the sale of our shareholdings, generating proceeds of euro 131 million, representing a 15% annual mezzanine rate of return and a 21% annual equity rate of return.  European Capital realized a euro 14 million equity gain from the transaction.

"Spotless Group, the first mezzanine transaction of our Paris office, has been a remarkable investment for European Capital," said Ira Wagner, President of European Capital Financial Services. "European Capital has been pleased to partner with AXA Private Equity in five transactions involving Spotless Group, representing a cumulated investment of euro 98 million."

"We are pleased to have supported Spotless Group and its outstanding management team in its ambitious pan-European growth strategy," said Stephane Legrand, Director of European Capital Financial Services. "It exemplifies the long term commitment we customarily make to our portfolio companies and private equity partners."

"European Capital proved to be a reliable, hands-on and reactive partner," said Philippe Poletti, AXA Private Equity Head of LBO Mid Cap Funds. "We appreciated their ability to support Spotless Group in its acquisitions in various European countries and in different currencies."

"European Capital's long term, sustained and expert support have been instrumental in the achievement of Spotless Group's strategic growth plan," said Pierre Le Tanneur, Chairman and CEO of Spotless Group. "We valued their contribution in helping us create this large pan-European household products group with leading market positions in niche market segments across Europe."

For more information about European Capital's investment in the Spotless Group, please go to http://www.europeancapital.com/our_portfolio/companies/spotless_group.html.

ABOUT EUROPEAN CAPITAL

European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with euro 1.3 billion in assets under management.  It is managed by European Capital Financial Services (Guernsey) Limited ("ECFSG" or the "Investment Manager"), a wholly-owned affiliate of American Capital Ltd.

ABOUT AMERICAN CAPITAL

American Capital Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager with $12.7 billion(1) in capital resources under management.  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 currently has eight offices in the U.S., Europe and Asia.  For further information, please refer to www.AmericanCapital.com.

ABOUT AXA PRIVATE EQUITY

Founded in 1996, AXA Private Equity, an AXA Investment Managers company, is a diversified private equity firm with $25 billion of assets managed or advised and eight offices in Paris, Frankfurt, London, New York, Singapore, Milan, Zurich and Vienna.  For further information, please refer to www.axaprivateequity.com.

ABOUT BC PARTNERS

BC Partners is a leading private equity firm with advised funds of euro 10 billion. Established in 1986, BC Partners has played an active role in developing the European buy-out market for over 20 years. The firm operates as an integrated team through offices in Europe and North America to acquire and develop businesses and create value in partnership with management. Since inception, BC Partners has invested in 71 companies with a total enterprise value of approximately euro 66 billion.

(1) As of December 31, 2009.

This press release contains forward-looking statements. The statements regarding expected results of European Capital and/or 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 European Capital and/or American Capital has made investments.

SOURCE European Capital Limited