Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association
American Capital Provides One Stop Financing to Haband
American Capital Strategies Ltd. (Nasdaq: ACAS - News) announced today that in the fourth quarter of 2006 it provided one stop financing to Haband Company Inc., one of America's oldest direct mail-order houses. American Capital's financing supports the acquisition of Haband by Golden Gate Capital.
"We are delighted to be supporting Golden Gate's acquisition of Haband, a long established mail-order house that will be an excellent addition to Golden Gate's existing portfolio of catalog companies," said Darin Winn, American Capital Regional Managing Director. "This is our fourth transaction with Golden Gate in the last 12 months and we're excited about building a strong partnership with this premier private equity firm. Golden Gate brings outstanding expertise in effecting change and creating value in portfolio companies and we look forward to continuing to support them in future transactions."
American Capital has invested directly and through its funds under management approximately $6.3 billion in 2006, $1.8 billion in the fourth quarter of 2006 and $75 million year to date. Not including funds under management, American Capital has invested approximately $4.8 billion in 2006, $1.3 billion in the fourth quarter of 2006 and $68 million year to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.html.
"Haband's successful offering of comfortable, value-priced casual apparel, shoes and practical home products appeals to its rapidly growing baby boomer customer base," said Natasha Volyanskaya, American Capital Principal. "As Haband joins Golden Gate's Catalog Holding family of specialty apparel brands, which generate over $1 billion in annual revenues, the Company will enjoy the benefits of scale and deep operational and marketing expertise."
"As the latest addition to Golden Gate Capital's portfolio of mail order companies, Haband stands to gain from the combined purchasing power, offshore sourcing expertise, cross prospecting and sharing of best practices that this portfolio provides," said Doug Bodel, American Capital Vice President. "Haband is well-positioned to further benefit from the growing percentage of those 55 and over who are making purchases over the Internet."
Haband, founded in 1925, is one of America's oldest direct mail-order houses. The Company sells a wide variety of low-priced casual apparel, shoes and accessories in basic styles and colors that are sourced internationally. Haband markets its products through weekly mailings, magazine and newspaper advertisements, catalogs, its website and three retail stores. Its customers are largely moderate and middle income seniors over 60 years old. Haband is headquartered in Oakland, NJ, and has a call center in Athens, GA, a warehouse and fulfillment center in Eatonton, GA and a data processing center in Peckville, PA.
"Responding rapidly and flexibly, American Capital produced a one stop financing solution that has played a pivotal role in this transaction," said Joshua Olshansky, Golden Gate Capital Principal. "We enthusiastically welcome American Capital's participation and we look forward to many collaborations in the future."
ABOUT AMERICAN CAPITAL
American Capital is the largest U.S. publicly traded alternative asset manager with $12 billion in capital resources under management. American Capital invests directly and through its asset management business is a global 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 invests from $5 million to $500 million in North America and euro 5 million to euro 400 million in Europe.
As of December 31, 2006, American Capital shareholders have enjoyed a total return of 617% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends.* American Capital has paid a total of $1.3 billion in dividends and paid or declared $22.44 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 http://www.AmericanCapital.com or http://www.EuropeanCapital.com.
ABOUT GOLDEN GATE CAPITAL
Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $2.6 billion of capital under management. In addition to Haband, American Capital has invested with Golden Gate in three other portfolio companies, including Appleseed's Inc., a leading direct marketer of women's apparel; Aspect Software Inc., the leading provider of contact center software solutions for businesses worldwide, and Inovis International Inc., a leading provider of business-to-business (B2B) software and services. In addition to Haband's and Appleseed's, Golden Gate's other catalog portfolio investments include Draper's & Damon's, a leading retailer of quality apparel serving woman aged 50 and older; Newport News and Spiegel, direct marketers of fashion forward women's apparel and accessories.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This press release contains forward-looking statements. The statements regarding expected results of 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 American Capital has made investments.
*Including reinvestment of Q4 2006 dividend, which will be paid on 1/18/2007. Q4 dividend reinvestment amount is estimated based on the 12/31/2006 close price less a 5% discount.
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