Publicly traded private equity firm American Capital announced Friday that its portfolio company Lifoam Holdings Inc. was acquired by Jarden Corporation. American Capital received $60 million in debt and equity proceeds and realized a gain of $14 million, subject to post-closing adjustments, the firm said in a written statement.
American Capital, Ltd. (Nasdaq: ACAS) (“American Capital”) announced today that its portfolio company Lifoam Holdings, Inc. (“Lifoam”) was sold to Jarden Corporation (“Jarden”) (NYSE: JAH) on December 31, 2012. American Capital received $60 million in debt and equity proceeds and realized a gain of $14 million, subject to post-closing adjustments. American Capital’s compounded annual rate of return earned on its debt and equity securities over the life of its investment was 11%, including interest, dividends, capital gain and fees.
“American Capital’s investment in Lifoam produced an attractive return for our shareholders,” said Brian Graff, American Capital Senior Vice President and Senior Managing Director. “We continue to search for new investment opportunities in a variety of business sectors, either as the sole investor in a One Stop Buyout® or with a sponsor in support of a private equity buyout.”
Lifoam is a manufacturer and distributor of expandable polystyrene (“EPS”) and polyurethane (“PUR”) products for consumer, healthcare and commercial applications. Lifoam’s products include foam picnic coolers, reusable ice and freeze packs and sophisticated protective and thermal packaging products.
“As a leader in each of its consumer, healthcare and commercial products business segments, Lifoam has demonstrated consistent and strong earnings growth even throughout the recession,” said Jim Gregory, American Capital Principal, Buyouts Group. “American Capital has been fortunate to partner with an exceptional management team, which has driven Lifoam’s growth and successful expansion into the highly attractive healthcare cold chain packaging market. We believe that Lifoam is a great addition to Jarden’s business and will benefit from being part of the Jarden family.”
Since American Capital’s 1997 IPO through the third quarter of 2012, the company has earned a 10% compounded annual return, including interest, dividends, fees and net gains, on over 340 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $18 billion of committed capital. American Capital earned a 27% 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, click here.
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. American Capital manages $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $118 billion of total assets under management (including levered assets). From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. For further information, please refer to www.AmericanCapital.com.
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.