American Capital invests $30 million in buyout of NPC

Afterward, it will own 89% of NPC, a designer and manufacturer of flexible, rubber pipe-to-manhole connectors for sanitary sewer, stormwater and drainage systems...

BETHESDA, MD, June 24, 2005 (PRNewswire-FirstCall) -- American Capital Strategies Ltd. has invested $30 million in the buyout of NPC Inc., the leading designer and manufacturer of flexible, rubber pipe-to-manhole connectors for sanitary sewer, stormwater and drainage systems. American Capital's investment takes the form of a senior term C loan, senior subordinated debt and equity. American Capital is also providing a revolving credit facility. NPC management is investing in equity alongside American Capital. Post close, American Capital owns approximately 89% of NPC, on a fully diluted basis.

"NPC is representative of the type of company that American Capital looks to invest in: it is the leading player in a small market with strong cash flows, excellent industry fundamentals, and multiple end product and market growth opportunities," said American Capital COO Ira Wagner. "It is our ninth buyout of 2005."

American Capital has invested over $2.5 billion in the last twelve months, over $1.2 billion year to date and $840 million quarter to date. For more information about American Capital's portfolio, go to www.acas.com/our_portfolio/our_portfolio.cfm.

"NPC is well known for its superior product quality, consistency and performance, as well as timely delivery response and excellent customer service," said American Capital Principal Dale Stohr. "Its products are critical to the sanitary sewer infrastructure and will benefit from increasing adoption in stormwater systems. NPC will also benefit as municipalities strive to meet the rapidly growing need to rehabilitate their aging sewer infrastructure."

"American Capital is backing a management team with substantial market experience, strong customer relationships and a history of success. We look forward to working with them," said American Capital Managing Director Robert Klein.

NPC's flexible connectors, or "Boots," create a watertight seal between inlet and outlet pipes and concrete manholes, preventing leakage and ground water infiltration while allowing for movement due to ground settling, shifting, and vibration. NPC's products are sold to a diversified customer base of more than 300 concrete precasters, who produce manholes, box culverts, storm-drain structures, and septic tanks. The Company has built its market leading position and brand awareness through a 30 year history of serving precasters. In addition to its core connectors business, the Company manufactures a broad product line of specialized equipment and products used in producing, testing and repairing manholes and pipes. These products include chimney seals and internal joint seals for manhole and pipe repair, targeting the growing market for rehabilitation products for North America's decaying sewer infrastructure. NPC operates from three facilities, two in Milford, New Hampshire and one in Park Hills, Missouri. The Company has a history of stable and consistent financials.

"We are excited about partnering with American Capital for the next phase of our Company's growth," said NPC CEO Randy Snyder. "The strategic and financial resources they bring to the table will help us implement our vision for the Company."

American Capital (www.americancapital.com) is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.4 billion. American Capital invests in and sponsors 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.

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