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http://ih.advfn.com/p.php?pid=nmona&cb=1239796243&article=37282745&symbol=N^ACAS

Date : 04/14/2009 @ 3:49PM
Source : PR Newswire



American Capital Receives Cash Proceeds of $22 Million from Sale of Corrpro Companies

BETHESDA, Md., April 14 /PRNewswire-FirstCall/ -- American Capital Ltd. (NASDAQ:ACAS) announced today that in the first quarter of 2009 it received cash proceeds of $22 million from the sale of its portfolio company Corrpro Companies Inc. to a wholly-owned subsidiary of Insituform Technologies Inc. (NASDAQ:INSU), realizing a gain of $6 million. Including investments in Corrpro by American Capital's affiliated funds under management, total inception to date realized gains and dividends received were $9 million. American Capital's compounded annual rate of return, including interest, dividends and fees earned over the life of its investment was 21%. The proceeds received by American Capital were greater than the fourth quarter 2008 valuation of the investment by $0.5 million, or 2%.

In March 2004, American Capital invested $16 million in Corrpro to support its recapitalization by Wingate Partners. American Capital's investment took the form of senior subordinated debt with warrants and redeemable preferred equity with warrants.

"It has been a pleasure to partner with Wingate for the first time on our investment in Corrpro," said Douglas Kelley, Principal, Sponsor Finance Group. "Over the course of our five year investment, Corrpro made strategic investments in marketing and personnel, which were critical in growing revenue and cash flow. We commend management on making the right investments in attractive market segments, which generated attractive returns for all company stakeholders, including American Capital."

Corrpro, headquartered in Medina, Ohio and Houston, Texas, with over 30 offices worldwide, is a leading provider of corrosion control engineering services, systems and equipment to the infrastructure, environmental and energy markets around the world. Corrpro is the leading provider of cathodic protection systems and engineering services, as well as corrosion protection services relating to coatings, pipeline integrity and reinforced concrete structures.

Since American Capital's August 1997 IPO through the fourth quarter of 2008, the company has earned a 17% compounded annual return, including interest, dividends, fees and net gains, on 249 realizations of senior debt, subordinated debt and equity investments, totaling $11 billion of committed capital. These realizations represent 47% of all amounts invested by American Capital since its August 1997 IPO. Proceeds from these realizations exceeded the total associated prior quarter valuation of the investments by less than 1%. American Capital earned a 30% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.

For more information about American Capital's investment in Corrpro, please go to http://www.americancapital.com/news/newsreleases/2004/pr20040331.html.

For a chart showing American Capital's exited portfolio companies, please go to http://www.americancapital.com/our_portfolio/exited.html.

ABOUT AMERICAN CAPITAL

American Capital 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 and structured products. Founded in 1986, American Capital has $14 billion(1) in capital resources under management and ten offices in the U.S., Europe and Asia. For further information, please refer to http://www.americancapital.com/.

(1)As of December 31, 2008.

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.

CONTACT: Douglas Kelley, Principal, Sponsor Finance Group [phone] Jennifer Burke, Corporate Communications [phone]

DATASOURCE: American Capital Ltd.

CONTACT: Douglas Kelley, Principal, Sponsor Finance Group,

[phone], or Jennifer Burke, Corporate Communications of American

Capital Ltd., [phone]

Web Site: http://www.americancapital.com/