European Capital Receives Proceeds of euro 66.8 Million from Three Exits

ST. PETER PORT, Guernsey, Jan. 13 /PRNewswire-FirstCall/ -- European Capital Limited ("European Capital") announced today that it has received proceeds of euro 66.8 million from the exit of three portfolio companies.  

"We are pleased to announce the sale of MW Brands' senior subordinated debt, the repayment of Orangina Schweppes' senior subordinated debt and the repayment of Simple Health & Beauty's second lien, senior subordinated debt and PIK loan," said Nathalie Faure Beaulieu, Regional Managing Director of European Capital Financial Services.

MW BRANDS

The sale of euro 7.2 million of senior subordinated debt from MW Brands represented a 14% annual rate of return.  European Capital initially provided funding to support the acquisition of MW Brands from Heinz in July 2006, investing euro 6.1 million in senior subordinated debt alongside equity sponsor Lehman Brothers Merchant Banking.

MW Brands is a producer of seafood, specializing in tuna based products and also selling a comprehensive range of salmon, mackerel, sardines, seafood spreads and other seafood products.  The company's core brands include John West, Petit Navire, Parmentier and Mareblu, and its products are mainly sold in the UK, France, Italy, Ireland and the Netherlands.  The company is headquartered in France.

For more information about European Capital's investment in MW Brands, go to http://www.europeancapital.com/our_portfolio/companies/mw_brands.html.

ORANGINA SCHWEPPES

European Capital originally provided funding to support the recapitalization of Orangina Schweppes in August 2006, investing euro 7.6 million in senior subordinated debt alongside equity sponsors Lion Capital and The Blackstone Group International.  In November 2009, Suntory Holdings, a Japanese beverage maker, purchased Orangina Schweppes.  This purchase led to the repayment of our senior subordinated debt, generating proceeds of euro 8.7 million, representing a 12% annual rate of return on our original investment.  

Orangina Schweppes is a European group specialized in the manufacturing, distribution and sale of soft drinks, with a strong presence in local markets.  The company's core brands include Orangina, Schweppes, Oasis, Trina, Pulco and La Casera, and its products are sold in over 60 countries.  The company is headquartered in France and employs nearly 2,500 people.

For more information about European Capital's investment in Orangina Schweppes, go to http://www.europeancapital.com/our_portfolio/companies/orangina.html.

SIMPLE HEALTH & BEAUTY

European Capital originally provided funding to support the refinancing of Simple Health & Beauty (formerly Accantia Health & Beauty) in June 2007, investing 35 million pounds Sterling in second lien, subordinated debt and PIK loan alongside equity sponsor Duke Street Capital.  In December 2009, Alberto Culver Business, a US based beauty business, purchased Simple Health & Beauty.  This purchase led to the repayment of our second lien, senior subordinated debt and PIK loan, generating proceeds of 45 million pounds Sterling, representing a 14% annual rate of return on our original investment.  

Simple Health & Beauty is a skincare and toiletries business that owns Simple, the UK's pre-eminent brand of skincare and toiletries products developed especially for sensitive skin.  The company is based in West Midlands, UK and its products are mainly sold in the UK and Republic of Ireland.

For more information about European Capital's investment in Simple Health & Beauty, go to http://www.europeancapital.com/our_portfolio/companies/accantia_health.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 is a publicly traded private equity firm and global asset manager with $12 billion 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.

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