April 17, 2014
/PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that its portfolio company SPL Acquisition Corp., parent company to Scientific Protein Laboratories LLC (collectively "SPL" or the "Company"), was sold to Shenzhen Hepalink Pharmaceutical Co., Ltd. ("Hepalink"), one of the largest suppliers of heparin sodium in the world. American Capital and its affiliated funds received
in debt and equity proceeds, including escrows and expected tax refunds, and realized a gain of
from the transaction, subject to post-closing adjustments. Of the total proceeds, American Capital received
in debt and equity proceeds, including escrows and expected tax refunds, realizing a gain of
from the transaction, subject to post-closing adjustments. American Capital also recognized
of dividend income over the life of its investment. In addition to the proceeds received at closing, there are contingent earnout payments in the amount of
, which may be paid to American Capital and its affiliated funds upon SPL achieving specified milestones. American Capital's compounded annual rate of return earned on its debt and equity securities over the life of its investment was 15%, including interest, realized gains and fees.
"The success of the SPL investment is a result of its strong management team, leading market position and commitment to the safety and quality of its products," said
, American Capital Managing Director, Healthcare Group. "We are proud of the Company's improvements and success over our investment period, which made it an attractive purchase for Hepalink."
"American Capital was able to contribute significantly to SPL's growth and success over the last few years," said
, American Capital Senior Associate. "By using the resources of our investment, operations, legal and other staff teams, we helped SPL complete a notable acquisition, navigate through changing market conditions and resolve significant product quality challenges."
SPL is a leading global, independent manufacturer and supplier of active pharmaceutical ingredients ("APIs"). SPL specializes in cGMP biopharmaceutical manufacturing and is one of the largest commercial suppliers of Heparin Sodium USP, Pancreatin USP and Pancrelipase USP. The Company serves the pharmaceutical, veterinary and food industries globally. SPL is headquartered in
"For more than seven years, American Capital partnered with us as we grew our business, developed new products and supported our valued customers," said
, SPL Chief Executive Officer. "American Capital's deep appreciation for SPL, our employees and customers and its understanding of our unique industry, products and complex regulatory requirements proved instrumental to SPL's success. We are excited about this new phase under Hepalink and what it means for SPL."
American Capital first invested in the One Stop Buyout® of SPL in
. American Capital's investment took the form of a revolving credit facility, a senior term loan, a senior second lien loan, senior and junior subordinated debt and equity. For more information on American Capital's investment, visit
Since American Capital's 1997 IPO through the fourth quarter of 2013, it has earned a 10% compounded annual return, including interest, dividends, fees and net gains, on over 370 realizations of senior debt, subordinated debt, equity and structured products investments, totaling
of committed capital. American Capital earned a 24% compounded annual return on the exit of its equity investments, including dividends, fees and net gains. For a chart showing a partial listing of American Capital's exited portfolio companies, please go to
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy & infrastructure and structured products. American Capital manages
of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with
of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with approximately
of net book value, American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately
of net book value and American Capital Senior Floating, Ltd. (Nasdaq: ACSF). From its eight offices in the U.S. and
, American Capital and its affiliate, European Capital, will consider investment opportunities from
$10 million to $750 million
. For further information, please refer to
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.
, Managing Director, Healthcare Group
SOURCE American Capital, Ltd.