American Capital Receives $215 Million in Cash Proceeds from the Sale of CIBT Solutions, Inc.

Published on Tuesday, 17 January 2012 08:48 Written by TradersHuddle Staff

BETHESDA, Md., Jan. 17, 2012 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) announced today that on December 15, 2011 it completed the sale of its portfolio company CIBT Solutions, Inc. ("CIBT") to ABRY Partners.  American Capital received $215 million in cash proceeds which were less than American Capital's third quarter 2011 valuation of the investment by $2 million, or less than 1%.  American Capital's compounded annual rate of return earned over the life of its total investment in CIBT was 15% for all debt and equity investments, including interest, dividends, fees and expected escrow proceeds. 



"We are extremely pleased with the results of our CIBT investment, which illustrates American Capital's long-term dedication to assisting portfolio companies with flexible financing solutions," said Brian Graff, American Capital Senior Managing Director.  "We continue actively to seek attractive investment opportunities such as CIBT, including One Stop Buyouts® of up to $300 million and lending opportunities ranging from $10 million to $100 million in support of private equity sponsored buyouts."



"Following our initial debt investment in CIBT in 2006 and then our One Stop Buyout® in 2008, we have worked closely with management as they continued to expand CIBT globally and build the company into an industry leading platform," said Sean Eagle, American Capital Principal, Buyouts Group.  "CIBT has succeeded in spite of the economic downturn, growing both organically and through an active acquisition program." 



CIBT is the leading global provider of expedited travel document processing services.  Through operations in North America, Europe and Asia, CIBT serves multinational corporations, global travel management companies, tour and cruise operators, government agencies and Do-It-Yourself travelers. CIBT assists nearly one million travelers annually to obtain short-term visas, passports and other documents for business and leisure travel.



"We are excited to continue our relationship with CIBT by virtue of our retained equity interest in the newly capitalized CIBT alongside ABRY," said Justin DuFour, American Capital Vice President, Buyouts Group.  "CIBT's global scale and leading market position will enable it to continue to thrive from ongoing growth in international travel and the increasing need for travel documentation."



American Capital first invested in CIBT in May 2006 to support Audax Group's acquisition of CIBT. In January 2008, American Capital acquired the company from Audax through a One Stop Buyout®.  Since 2008, American Capital has supported CIBT's acquisition of four travel document expeditors, including CIBT's September 2010 acquisition of London-based Travel Logistics Limited.  For more information about American Capital's investment in CIBT, please go to http://www.americancapital.com/our_portfolio/companies/cibt_holdings.html.



Since American Capital's 1997 IPO through the third quarter of 2011, the company has earned an 11% compounded annual return, including interest, dividends, fees and net gains, on 327 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $16 billion of committed capital.  American Capital earned a 29% 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 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 $57 billion in assets under management and seven offices in the U.S. and Europe. American Capital and European Capital will consider investment opportunities from $10 million to $300 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.

SOURCE American Capital, Ltd.