American Capital Invests $30 Million in Boot Company Acquisition
BETHESDA, Md., Jan. 7 /PRNewswire-FirstCall/ -- American Capital Strategies
Ltd. (NASDAQ:ACAS) announced today it has invested $30 million in Rocky Shoes
and Boots Inc. (NASDAQ:RCKY), a manufacturer of rugged outdoor boots, to
support its acquisition of EJ Footwear LLC, a manufacturer of boots for work
applications and general outdoor use. American Capital's investment takes the
form of a senior term loan B. GMAC Commercial Finance is providing a revolving
credit facility and a senior term loan.
"American Capital is off to a great start in 2005 by supporting the combination
of two leading, non-fashion, niche focused boot manufacturers," said American
Capital COO Ira Wagner. "We are pleased to back Rocky's strong and experienced
management team, enabling them to expand and strengthen their business with a
complementary acquisition. Our ability to directly invest capital in middle
market companies is critical to their growth and success." American Capital invested approximately $2 billion in 2004 and approximately
$750 million in the fourth quarter of 2004. For more information about
American Capital's portfolio, go to
http://www.acas.com/our_portfolio/our_portfolio.cfm.
"Rocky and EJ fit very well together, possessing many similarities yet
complementing each other with their product lines, customer bases and
significant distribution channel diversity," said American Capital Principal
Ken Jones. "Both companies have a long history in the business, stable core
brands, low cost operations, including outsourced overseas manufacturing, low
customer concentration, and are dedicated to product development. Furthermore,
with a combined, broad product offering serving a larger, more diverse boot
target audience, the Company insulates itself from market cyclicality. This
acquisition is also expected to result in synergies and cost savings that will
bode well for Rocky as it continues to expand." Founded in 1932, Nelsonville, OH-headquartered Rocky is a manufacturer of
outdoor, occupational and casual boots as well as hunter and outdoorsman
clothing, gloves and accessories sold under the Rocky and Gates brand names. The Company sells its products to customers in manufacturing, farming and
ranching, construction, law enforcement, postal service, emergency medical
professions and the US military. Rocky's products are sold by more than 3,000
retail and mail order companies, including Belleville Shoe Manufacturing
Company, Wal-Mart, Gander Mountain, Dick's Sporting Goods, Bass Pro Shops Inc.,
Cabela's Inc. and Shoe Show Inc. The Company employs over 1,000 primarily in
its manufacturing facilities in the Dominican Republic and Puerto Rico. Rocky
also has corporate and distribution operations in Ohio and Ontario, Canada.
Founded in 1890 and headquartered in Franklin, TN, EJ Footwear is a
manufacturer of outdoor, heavy duty use and western style boots, sold under
five brands: Georgia Boot, Lehigh, Durango, Dickies and John Deere. EJ's
footwear is sold in more than 10,000 retail locations in the U.S. Customers
include Mid-States Inc., Tractor Supply Company, New York State, Human
Technologies Inc., Wheatbelt Inc. and Quality Farm Stores Inc. EJ has four
operating facilities in Tennessee and New York and employs nearly 500.
The combined companies earned revenues of approximately $270 million in the
twelve month period ending in September 2004.
"For our acquisition, we sought an investment partner who would understand our
business, the dynamics of the competitive industry and our vision for growth,
and we found that in American Capital," said Rocky Boots and Shoes CEO Mike
Brooks. "Our acquisition of EJ is a significant milestone for Rocky. The
acquisition is expected to greatly enhance our business by increasing customer
relationships, expanding overseas sourcing relationships and extending our
product line." For more information about the combination of these two leading manufacturers
of outdoor and occupational boots, go to
http://www.acas.com/news/press_releases/pr/pr20050107a.html About American Capital American Capital is a publicly traded buyout and mezzanine fund with capital
resources of more than $4.8 billion. American Capital is an investor in and
sponsor of management and employee buyouts, invests in private equity buyouts,
and provides capital directly to private and small public companies. American
Capital provides senior debt, mezzanine debt and equity to fund growth,
acquisitions and recapitalizations.
As of December 31, 2004, American Capital shareholders have enjoyed a total
return of 326% since the Company's IPO -- an annualized return of 22%, assuming
reinvestment of dividends. American Capital has paid a total of $645 million
in dividends and paid or declared $16.03 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 our website at
http://www.americancapital.com/.
This press release contains forward-looking statements. The statements
regarding expected results of American Capital Strategies 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. DATASOURCE: American Capital Strategies Ltd.
CONTACT: Ken Jones, Principal, +1-610-238-0210, or Brian Maney, Director, Corporate Communications, +1-301-951-6122, both of American Capital Strategies, Ltd.
Web site: http://www.americancapital.com/ http://www.acas.com/our_portfolio/our_portfolio.cfm http://www.acas.com/news/press_releases/pr/pr20050107a.html
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