American Capital, Ltd.ACAS
("American Capital") and its affiliated fund, American Capital Equity III, LP ("ACE III"), announced today that their portfolio company Avalon Laboratories Holding Corp. ("Avalon" or the "Company) was sold to Nordson CorporationNDSN
, the world's leading precision fluid dispensing systems manufacturer, for $180 million. Over the life of its investment, American Capital realized a compounded annual rate of return of 19% on its equity investment, including dividends and fees. "We are extremely pleased with the results of our investment in Avalon, which is the first exit for ACE III," said Eugene Krichevsky, Partner, American Capital Equity Management. "Avalon generated strong financial performance during our hold period, with double digit annual revenue and EBITDA growth despite the global recession. Led by a talented management team dedicated to innovation, the Company has become the leading supplier of complex medical tubing products for the cardiology and pulmonology market segments." "Our investment in Avalon is an excellent example of our focus on providing founders of lower middle market companies with both liquidity and a strong partner post-closing to ensure continued success," said Ryan Sacco, Vice President, American Capital Equity Management. "We worked closely with Avalon's management team to provide strategic support and guidance as the Company expanded its product offering into adjacent markets, acquired new customers and enhanced its manufacturing capabilities." "I've thoroughly enjoyed partnering with the American Capital team and appreciate their support for our various strategic and operational initiatives," added Avalon CEO, Mike Janish. "I look forward to leveraging Nordson's global footprint, complementary product lines and operational know-how in the next phase of Avalon's growth." Avalon is a leading designer and manufacturer of highly-specialized, single-use catheters and specialty medical tubing products for cardiology, pulmonology and related applications. Avalon's devices are life-critical components that provide connections between patients and life support machines. The Company serves OEM customers in the cardiology, pulmonology, endovascular, bariatrics, tracheostomy, endoscopy, non-vascular stent and ophthalmic markets segments. Avalon is headquartered in Los Angeles, CA and has a FDA and ISO 13485 registered manufacturing facility in Guaymas, Mexico. For more information on American Capital's investment, visit www.americancapital.com/our-portfolio/avalon-laboratories-inc. Since American Capital's 1997 IPO through the second quarter of 2014, it has earned a 10% compounded annual return, including interest, dividends, fees and net gains, on over 380 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $20 billion of committed capital. American Capital earned a 23% 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-companies.
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