BETHESDA, Md., Jan 21, 2005 /PRNewswire-FirstCall via COMTEX/ -- American Capital Strategies Ltd. (ACAS) announced today that in December 2004 it invested $20 million in Seroyal International Inc. and Seroyal USA Inc. (together, "Seroyal"), a leading marketer and distributor of branded nutritional supplements and homeopathic medicines to healthcare professionals in Canada and the U.S. American Capital's investment takes the form of a senior term loan B, senior subordinated debt and preferred and common equity and supports Bruckmann, Rosser, Sherrill & Co. LLC's ("BRS") recapitalization of Seroyal. Rosetta Raso, founder and owner of Seroyal, will continue to serve in her capacity as President and Chief Executive Officer of Seroyal.
"Our investment in Seroyal demonstrates American Capital's competitively unique ability to provide a comprehensive financing package for private equity sponsors," said American Capital COO Ira Wagner. "We are pleased to have the opportunity to partner for the first time with BRS in their investment in an excellent company with outstanding financial performance and strong growth potential."
American Capital invested approximately $2 billion in 2004, approximately $750 million in the fourth quarter of 2004 and $35 million year to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.cfm.
"Seroyal, a leader in the growing holistic healthcare market with a reputation for the highest quality products in the industry, has experienced superior financial performance resulting from its strong brand equity, loyal customer base, growth in the holistic healthcare marketplace, and high value offered to its customers," said American Capital Managing Director Brian Graff.
"Seroyal enjoys a significant distinct competitive advantage: serving as a one-stop shop for its healthcare professional customers' needs by offering both nutritional supplements and homeopathic remedies," said American Capital Vice President Adam Spence. "With a highly diversified customer base and positive industry trends fueled by an aging, health-conscious baby boomer population, increasing acceptance of holistic medicines, and a growing population, Seroyal can look forward to a promising future."
Founded in 1984, and headquartered in Richmond Hill, Ontario, Seroyal markets and distributes nutritional supplements and homeopathic products under the Genestra and Unda brands, respectively. The Unda homeopathic products are manufactured by Unda SA of Belgium, a leading manufacturer of homeopathic products known for quality products through its greater than 50 year history.
Seroyal enjoys a diversified recurring customer base of several thousand customers in the U.S. and Canada, including naturopaths, homeopaths, chiropractors, medical doctors, nutritionists, and acupuncturists. In addition to its Ontario facility, Seroyal has a U.S. distribution facility in Wood Dale, Illinois.
"This was our first time working with American Capital and we were impressed with their dedication and hard work in understanding our investment strategy in this complicated industry," said BRS Managing Director Stephen Sherrill. "American Capital's financial capabilities, teamwork approach and experience in both debt and equity financing made them the perfect investment partner. We look forward to working with them as Seroyal grows in the Canadian and U.S. markets."
American Capital is a publicly traded buyout and mezzanine fund with capital resources of more than $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
As of December 31, 2004, American Capital shareholders have enjoyed a total return of 326% since the Company's IPO -- an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $651 million in dividends and paid or declared $16.03 dividends per share since its August 1997 IPO at $15 per share.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit our website at http://www.AmericanCapital.com.
Bruckmann, Rosser, Sherrill & Co. is a New York based private equity investment firm with approximately $1.2 billion under management. BRS was founded in 1995 and has since invested in over 20 companies in the following industries: restaurants, consumer goods, specialty retail, recreation/leisure, apparel, home furnishings, industrial and commercial services, commercial equipment manufacturing, wholesale distribution and healthcare services. BRS makes leveraged buyout, recapitalization and growth capital investments. All management teams of BRS companies are equity investors in their businesses. BRS' portfolio of investments includes Totes Isotoner Corporation, a designer, distributor and retailer of high-quality, branded umbrellas, gloves, hats, scarves, rubber footwear and slippers; Town Sports International, the operator of the largest chain of health and fitness clubs in the Northeast and Mid- Atlantic regions of the United States, including New York Sports Clubs, Washington Sports Clubs, Boston Sports Clubs and Philadelphia Sports Clubs; and McCormick and Schmick's, a chain of full-service, casual dining seafood restaurants located in 15 states.
This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies 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 American Capital has made investments.