November 1, 2004
Bethesda, MD - American Capital Strategies Ltd. (Nasdaq: ACAS)announced today it has invested $66 million in BBB Industries Inc., a leading remanufacturer of starters and alternators for sale in the automotive aftermarket. American Capital's investment takes the form of a revolving credit facility, senior term notes and senior subordinated debt to provide liquidity for the growth needs of the Company. ShoreView Industries is the sponsor. BBB's current senior management team is remaining with the company.
"American Capital has supported transactions for 59 equity sponsors over the past 7 years, with ShoreView our 19th new sponsor relationship in the last twelve months," said COO Ira Wagner. "BBB is a fine example of the type of company American Capital generally seeks to invest in: a healthy, growing company with a clear strategy; an excellent market position; strong competitive advantages; and finally, outstanding execution of their business plan on a daily basis."
"We're happy for the opportunity to partner with ShoreView Industries to provide capital to fuel BBB's growth under its current management and maintain the company's strategic direction. BBB's strong financial performance and experienced team of management owners positions the company to take advantage of favorable industry dynamics," said American Capital Managing Director Frank Do. "Most notably, starters and alternators are essential components of cars, with steady forecasted growth in replacement demand."
"We look forward to working with ShoreView and the management owners to continue to build upon BBB's solid market position," added American Capital Vice President Kimberly Chu.
Founded in 1987, BBB is headquartered in Mobile, AL and operates a 170,000 square foot manufacturing facility in Reynosa, Mexico, which is the only facility in the industry ISO/TS 16949 certified. The Company currently has over 1,300 employees. Pictured here are examples of BBB's top quality remanufactured alternators for both the import and domestic vehicle market.
ShoreView Industries, based in Minneapolis, manages a $300 million private equity limited partnership. ShoreView invests this partnership in middle-market companies with operations in North America, across a wide range of industries. ShoreView structures a variety of acquisition, recapitalization and build-up transactions, typically in businesses with revenues ranging between $20 million and $150 million. The Principals at ShoreView have completed over 40 lower middle-market transactions together over the past several years.
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