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European Capital sells portfolio company.

M2 EQUITYBITES-June 13, 2013-European Capital sells portfolio company(C)2013 M2 COMMUNICATIONS

13 June 2013 -- American Capital, Ltd. (NASDAQ: ACAS) affiliate European Capital Ltd. and its affiliates said that they have completed the sale of portfolio company Metall Technologie Holding GmbH and its affiliates to LOI Thermprocess GmbH (LOI), a subsidiary of Tenova SpA (Tenova).

European Capital acquired MTH in December 2006 in a One Stop Buyout, providing senior term loans including a revolving credit facility, an acquisition line, a mezzanine loan, a shareholder loan and common equity. European Capital earned a 1.6x money multiple on its investment. This return includes the interest and fees earned over the life of European Capital's investment in MTH. The amount realized by European Capital was greater than the first quarter 2013 valuation of the investment by 1%.

MTH is a international provider of industrial heat treatment technology and aftermarket services for thermo-chemical and thermo-physical treatment of finished metallic and alloy-based components, primarily in the aerospace, heat treatment, automotive and machine tooling industries. These processes are applied in a broad range of industries to modify a material's physical characteristics in order to increase flexibility, wear-resistance or hardness. The company offers a complete range of customized and advanced industrial heat treatment equipment, both vacuum and atmospheric, and provides aftermarket parts and services for an installed base of 2,500 units. MTH serves its global blue-chip customers with over 320 employees through five well established brands: Schmetz, Mahler and IVA in Germany, BMI in France and Huisen in China. MTH is headquartered in Menden, Germany.

European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with EUR1.2bn in assets under management. European Capital is a wholly-owned affiliate of American Capital, Ltd. It is managed by European Capital Financial Services (Guernsey) Ltd. The company's website is at

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. The company's website is at

USD 1 = 0.63783 GBP

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Publication:M2 EquityBites (EQB)
Date:Jun 13, 2013
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