RNS Number:6382S
European Capital Limited
18 April 2008
First Floor, Dorey Court
Admiral Park
St. Peter Port, Guernsey GY1 4AF
Info@AmericanCapital.com
www.EuropeanCapital.com
FOR IMMEDIATE RELEASE
18 April 2008
Contact:
Matthew Gordon Clark, Director, London Sponsor Finance Group +44 (0)20 7539 7000
Jerry Tebbutt, Director, London Sponsor Finance Group +44 (0)20 7539 7000
Brian Maney, Corporate Communications +1 (301) 951 6122
EUROPEAN CAPITAL'S SPONSOR FINANCE GROUP INVESTS €97 MILLION IN THREE PORTFOLIO
COMPANIES
St. Peter Port, Guernsey - 18 April 2008 - ECAS S.a.r.l, an indirect
wholly-owned subsidiary of European Capital Limited (LSE: ECAS) ("European
Capital"), announced today investments totaling €97 million in three companies
made in the first quarter of 2008. The investments were led by the London
office of European Capital Financial Services Limited ("European Capital
Services"), the sub-investment manager of European Capital.
In the first quarter of 2008, European Capital invested a total of €140 million
in six companies, compared to €267 million invested in ten companies in the
first quarter of 2007. European Capital raised over €520 million in capital in
the first quarter of 2008, compared to €47 million raised in the first quarter
of 2007 and €518 million in all of 2007. In addition, European Capital realized
€115 million from investments in the first quarter of 2008, compared to €163
million in the first quarter of 2007 and €707 million in all of 2007; a portion
of these funds are available for reinvestment.
"The first quarter of 2008 continued to present attractive investment
opportunities for European Capital in the mezzanine market," said Nathalie Faure
Beaulieu, Regional Managing Director, European Capital Services. "European
Capital's growing reputation over the last few years, our international presence
and ability to provide one-stop financing of mezzanine debt and equity in
support of private equity buyouts gives us a competitive advantage relative to
other financing sources. Our London office was able to capitalize on these
opportunities and added three market leading companies to our diversified
portfolio, which now totals 67 companies."
In January, European Capital invested €18 million in 3i's portfolio company
Bestinvest, a leading independent financial advisor (IFA). European Capital's
investment takes the form of senior subordinated debt, shareholder loans and
common equity.
"Rising levels of personal wealth over the long term and an increased emphasis
on savings are driving the need for high quality financial advisors," said
Matthew Gordon Clark, European Capital Director, London Sponsor Finance Group.
"As one of the few independent market players of scale that provides a fully
fledged advisory service to 'mass affluent' customers, Bestinvest is a leader in
this niche market. Additionally, the company's strong management team and
unique offerings support its record of retaining customers."
Bestinvest was founded in 1986 and originally focused on tax benefit analysis
for top rate taxpayers. During the 1990s, the range of services was expanded to
cover most types of investments for UK residents, as well as financial planning.
Following its November 2004 acquisition of SMA Group, a leading independent
pensions and financial adviser, the range of services provided has extended to
include employee benefits consultancy and general insurance broking. Bestinvest
clients now have investable assets in excess of £2 billion.
In February, European Capital invested €47.1 million in Inspicio plc, a provider
of testing, inspection and certification services in the Commodities,
Environmental and Food Safety markets. European Capital's investment takes the
form of senior subordinated debt and supports 3i's acquisition of Inspicio.
"Inspicio's business groups occupy leading positions in high growth markets,"
said Jerry Tebbutt, European Capital Services Director, London Sponsor Finance
Group. "One of Inspicio's greatest assets is its outstanding reputation,
fostered by an experienced and dedicated management team. The management team
has delivered impressive results and outperformed market forecasts and has
proven to be capable of executing and integrating acquisitions and delivering
significant cost savings."
Inspicio acquires and manages market leading organizations in the testing,
inspection and performance conformity markets, both in the UK and
internationally. Inspicio has more than 6,500 employees and operates in over
125 countries. Its operating businesses include Inspectorate, a global leader
in commodity testing and inspection services; the Environmental Services Group,
a leading provider of environmental testing services; and the Eclipse Scientific
Group, the UK's leading food testing business.
In March, European Capital invested €31.6 million supporting 3i's acquisition of
the Active Pharmaceutical Ingredients (API) division of Alpharma Inc. (NYSE:
ALO). European Capital's investment takes the form of senior subordinated debt.
"API holds leading positions in all of its product markets," said Matthew Gordon
Clark. "The company operates in a niche market and we are pleased to be backing
3i and a strong management team to enhance API's current product offerings and
develop new products to address further niche areas with strong and profitable
growth."
API is based in Oslo, Norway and is a leading company in the fast-growing
injectable generics market. Its comprehensive product portfolio includes active
ingredients and finished dosage forms in a number of important antibiotic
products such as Vancomycin, Bacitracin and Polymyxin. API has approximately
700 employees and has manufacturing facilities in Oslo, Copenhagen, Budapest and
Taizhou, China.
European Capital has invested over €1.4 billion in the last twelve months.
European Capital has assisted in the refinance of €297.3 million of senior debt
for its portfolio companies in the last twelve months. For more information
about European Capital's portfolio, go to www.EuropeanCapital.com/our_portfolio/
portfolio.html
ABOUT EUROPEAN CAPITAL
European Capital is a publicly traded investment company for pan-European
equity, mezzanine and senior debt investments with capital resources of
approximately €2.8 billion ($4.4 billion). It is managed by European Capital
Financial Services (Guernsey) Limited ("ECFSG" or "the Investment Manager"), a
wholly-owned affiliate of American Capital Strategies, Ltd ("American Capital").
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
generally invests between €5 million and €500 million per transaction in equity,
mezzanine debt and senior debt to fund growth, acquisitions and
recapitalisations.
The investment objective of European Capital is to provide investors with
dividend income and the potential for share value appreciation by investing in
debt and equity investments in private and public companies headquartered
primarily in Europe. European Capital seeks to achieve this through pursuing the
following types of investments:
European Capital One Stop BuyoutsTM
Through our One Stop BuyoutsTM, European Capital provides equity, mezzanine debt
and senior debt as the lead investor in the buyout of private and public
companies.
Mezzanine Direct with Sponsors
European Capital provides one stop financing of subordinated debt and equity for
buyouts sponsored by private equity firms where European Capital is either the
sole or lead mezzanine debt investor.
Syndicated Mezzanine and Senior Debt
European Capital provides mezzanine financing for buyouts sponsored by private
equity firms where European Capital is neither the sole nor lead mezzanine or
senior debt investor.
Direct Investments
European Capital provides subordinated debt and equity financing directly to
private and public companies, which is used for growth, acquisitions or
recapitalisations, and investing in structured finance vehicles.
Companies interested in learning more about European Capital's flexible
financing should contact Nathalie Faure Beaulieu or Simon Henderson at + 44 (0)
20 7539 7000 in London, Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris,
Robert von Finckenstein at +49 (0) 69 71 71 297-0 in Frankfurt, or Luis Felipe
Castellanos at +(34) 91 423 27 60 in Madrid, or visit the website at
www.EuropeanCapital.com.
ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. (Nasdaq: ACAS), with $19 billion in capital
resources under management, is an affiliate of European Capital and a member of
the S&P 500. It is the largest U.S. publicly traded private equity fund and the
largest publicly traded alternative asset managers. American Capital, both
directly and through its global asset management business, is an investor in
management and employee buyouts, private equity buyouts, and early stage and
mature private and public companies. American Capital provides senior debt,
mezzanine debt and equity to fund growth, acquisitions, recapitalizations and
securitizations. American Capital and its affiliates invest from $5 million to
$800 million per company in North America and €5 million to €500 million per
company in Europe.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCIPMMTMMMBBJP
