Since we first bought $ACAS in 2009 it has primarily been focused on repairing its balance sheet that was in tatters post ’08 crisis. In the past couple weeks thery made a few moves that show they are now back in business. We have seen a 350% move in this stock simply due to its NAV increasing as its assets were revalued post 2008 crash, they paid down debt and bought back 15% of the company’s shares at prices below NAV. So, yes, buying into a good company “because its cheap”, especially a financial stock at less that half BV (see $BAC (up 80%) and $AIG (up 33%)) can be very profitable.
BETHESDA, Md., Dec. 27, 2012 /PRNewswire/ — American Capital, Ltd. (ACAS) (“American Capital”) announced today that it has committed $212 million in the One Stop Buyout® of Cambridge Major Laboratories, Inc. (“CML” or the “Company”), a leading global provider of complex chemistry-based outsourcing services to the pharmaceutical and biotechnology industries. CML expands American Capital’s portfolio of healthcare products and services companies, which have aggregate revenues of over $600 million1. American Capital’s investment took the form of debt and preferred and common equity. Jefferies & Company, Inc., served as sole financial advisor to CML on the transaction. CML was a portfolio company of Arlington Capital Partners prior to American Capital’s investment.
Based in Germantown, WI, CML is an active pharmaceutical ingredient (“API”) development and manufacturing organization serving a broad customer base of pharmaceutical, biotech and generic drug companies. The Company operates from FDA inspected facilities in the U.S. and Europe. In 2012, the Company developed and supplied over 100 APIs for drugs in the early and mid-stages of development and 14 APIs for drugs that are commercially available. The products CML manufactures span a wide range of therapeutic categories from cancer to neurology to rare genetic diseases.“CML has experienced substantial growth since inception due to the Company’s continued expansion of its service offerings, operations and facilities,” said Kyle Bradford, Principal, American Capital Buyouts Group. “As a result, CML is now a market leader across the entire spectrum of drug development and commercialization, providing services and products to customers with early-stage, late-stage and commercial compounds. The Company’s market position, complex chemistry abilities, outstanding execution of its service offerings and large state-of-the-art facilities, both in the U.S. and Europe, will allow CML to continue to meet the increased outsourcing demand from pharmaceutical and biotech companies. We look forward to working with CML’s management team to substantially grow the Company, both organically and through acquisitions.”
“CML’s management team has significant experience and expertise in the chemistry research, manufacturing and pharmaceutical industries in addition to an impressive track record of delivering sustainable growth,” said Ryan Nagim, Vice President, American Capital Buyouts Group. “American Capital is pleased to work with CML’s seasoned management team in the next phase of the Company’s growth.”
“The management team at CML chose to partner with American Capital due to their ability to finance the entire transaction as well as their knowledge and expertise in growing companies within the life sciences industry,” said Brian Scanlan, President and CEO of CML.“American Capital’s financial and operational resources will allow us to expand our market presence in the U.S. and internationally. We look forward to working with American Capital’s impressive portfolio of pharmaceutical services companies that will fully compliment CML’s service offering.”
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BETHESDA, Md., Jan. 4, 2013 /PRNewswire/ — American Capital, Ltd. (ACAS) (“American Capital”) announced today that in December 2012 American Capital and an affiliate invested in the equity of portfolio company The Meadows to support the acquisition of Remuda Ranch, a provider of inpatient, residential and outpatient eating disorder treatment programs. The Meadows is a premier multi-disorder inpatient facility specializing in the treatment of a broad range of addictions.
“We are pleased to support The Meadows’ growth and expansion with this equity investment in support of its acquisition of Remuda Ranch,” said Bowen Diehl, American Capital Managing Director. “American Capital’s additional investment in The Meadows demonstrates our long-term commitment to growing and adding value to our portfolio companies. Since our investment in 2006, The Meadows has performed extremely well, attracting a large number of patients and providing successful treatments. The acquisition of Remuda Ranch expands The Meadows’ treatment services to address the growing needs of patients suffering from eating disorders, while providing The Meadows with facilities in which to expand its existing treatment programs.”
American Capital first invested in The Meadows in 2006. The Meadows offers treatment for psychological conditions, compulsive and addictive behaviors and affective disorders. Located on a 14 acre campus in Wickenburg, Arizona, The Meadows consists of an inpatient facility and two extended care facilities. Founded in 1976, The Meadows has helped more than 20,000 patients in one of its three inpatient centers and 25,000 attendees in national workshops. The Meadows’ world-class team of Senior Fellows, Psychiatrists, Therapists and Counselors treat the symptoms of addiction and the underlying issues that cause lifelong patterns of self-destructive behavior.
Founded in 1990 and also based in Wickenburg, Arizona, Remuda Ranch is focused exclusively on the treatment of eating disorders for adult, adolescent and child females and has treated more than 10,000 patients for anorexia nervosa, bulimia nervosa, binge eating disorder and other eating and co-occurring behavioral disorders. Remuda Ranch operates three levels of care, including: acute inpatient hospitalization, residential treatment and outpatient. Remuda Ranch’s facilities consist of five campuses on approximately 125 acres.
“As a leading clinical program focused on the resolution and treatment of trauma and addiction, The Meadows is focused and dedicated to addressing and treating trauma, particularly childhood trauma, and the resulting behavioral patterns,” said Marshall White, American Capital Vice President. “The joining of The Meadows and Remuda Ranch teams brings together some of the best medical and clinical professionals in the industry to provide eating disorder patients with a complete range of treatment solutions for eating disorders experienced by people of all age groups.”
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Jan. 8, 2013 /PRNewswire/ — American Capital, Ltd. (Nasdaq: ACAS) (“American Capital”) announced today that in December 2012 it invested $6.2 million ($10.7 million including investments by affiliates) in portfolio company Halt Medical, Inc., a medical device company focused on women’s health. The investment supports the commercialization of the Acessa™ System, a newly FDA cleared medical device to treat uterine fibroids.
“American Capital is pleased to be a part of Halt Medical’s continued growth and success in treating uterine fibroids with this additional financing,” said Gordon O’Brien, American Capital President, Specialty Finance and Operations. “The additional capital will support the Company’s commercialization of its new revolutionary medical technology for treating millions of women suffering from uterine fibroids, the Acessa™ System. The Acessa™ System is an alternative to hysterectomy for fibroid patients and is the first FDA cleared product used by gynecologists to treat all fibroid symptoms and types.”
American Capital and an affiliate first invested in Halt Medical in May 2007. Halt Medical is a medical device company focused on establishing a new standard of care for women with symptomatic uterine fibroids. The Company has developed and launched the Acessa™ System and Procedure, using radiofrequency energy to destroy uterine fibroids. The results of both U.S. and international trials have led to the clearance of the product by the FDA for use in percutaneous, laparoscopic coagulation and ablation of soft tissue, including treatment of symptomatic uterine fibroids under laparoscopic ultrasound guidance. In addition, the System has CE marking in the European Union and is licensed for sale in Canada. The Company was founded in 2004 and is located in Brentwood, CA.
“We are delighted that American Capital has chosen to once again lead financing for this critical new medical device,” said Jeff Cohen, Halt Medical Chief Executive Officer. “Since the start of our relationship, American Capital has been very supportive of our business model and technology. This additional investment will enable us to continue to build out the commercial side of our business and expand our market presence in the U.S. and internationally.”
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merican Capital, Ltd. (Nasdaq: ACAS) (“American Capital”) announced today that in December 2012 its portfolio company Potpourri Group, Inc. (“PGI”) acquired Cuddledown, Inc., a leading multi-channel retailer of high-end bedding related products. PGI is a multi-brand direct marketer offering a broad product line of distinctive home decor, casual apparel, gifts and unique accessories through catalogs and the internet.
“Cuddledown’s product offering and merchandising expertise in the high-end bedding market makes the company an excellent addition to PGI’s diverse product mix and will give PGI the opportunity to expand into the bedding product sector,” said Brian Graff, American Capital Senior Vice President and Senior Managing Director.
American Capital first invested in PGI in 2005. Formed in 1998, Chelmsford, MA-headquartered PGI is a catalog company with 13 diverse brands catering primarily to women. Through its portfolio, PGI offers a broad product line of distinctive home decor, casual apparel, gifts and accessories that are unique or difficult to find in other outlets.
Cuddledown sells high quality synthetic and down-filled comforters, pillows, sheeting and sleepwear. The company was founded in 1973 and is based in Yarmouth, ME.
“PGI’s management team has significant experience successfully integrating additional brands into its portfolio, fueling organic revenue growth and realizing considerable cost savings,” said Helen Yang, American Capital Principal, Buyouts Group. “PGI’s portfolio of 13 diverse brands caters to one of the largest, fastest growing and attractive demographics in the country: middle-to-upper-middle income female baby boomers. The addition of Cuddledown adds valuable diversification to PGI’s current merchandise mix and its similar customer demographics are expected to promote future growth.”
“We have developed a great relationship with American Capital since their initial investment in 2005 and look forward to continuing to work together on this exciting opportunity for PGI,” said PGI President and CEO Jonathan Fleischmann.
The ramifications of these moves are important. The last few years have seen debt repayments and portfolio company sales to repair the afore mentioned damaged balance sheet. It is repaired and then some. To see them now once again to invest funds in portfolio companies and buyout means they are now solidly comfortable with their financial position AND they are comfortable with the economy as a whole.
Additionally, moves like this will enable NAV to continue to grow organically, which is a key point because with a share price of $13, we are approaching the current NAV which ought to be easily >$17 when Q4 s reported. We are not at the smallest discount to NAV since we bought it (est. $18 NAV). It does not mean the shares are “fully valued”, they are still 30% below NAV which means they still have room to safely run. Since the discount to NAV is closing we now have to begin to focus more on how that NAV is going to grow outside of share repurchases and asset valuation normalization. That has to happen through operational results and moves like the ones above are the beginning of that.