ACAS Solicits Offers

This has been a long time coming…


The release:

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American Capital Concludes Initial Phase of Strategic Review, Announces It Will Solicit Offers to Purchase Company or Business Lines

BETHESDA, Md., Jan. 7, 2016 /PRNewswire/ — American Capital, Ltd. (Nasdaq: ACAS) (“American Capital” or the “Company”) announced today that its Board of Directors has completed the initial phase of its previously announced strategic review process and has authorized the Company to proceed with the solicitation of offers to purchase the Company or its various business lines in whole or in part.  Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC, retained by the Company as its financial advisors for the strategic review process, will assist with the solicitation of offers.

“The strategic review process has included an extensive consideration of various means of maximizing shareholder value,” said Neil M. Hahl, Chair of the Board’s independent Strategic Review Committee.  “After careful consideration, the Board unanimously concluded that soliciting proposals at this time provides the best and most expedient path to unlock shareholder value.  The Board has asked the Strategic Review Committee to continue working closely with our advisors, to report to the full Board and to make further recommendations as the strategic review process continues.”

“The management team recommended and fully supports the decision by the Board to proceed with the solicitation of offers and believes that it is in the best interests of our shareholders,” said Malon Wilkus, American Capital Chairman and Chief Executive Officer.  “Our business lines and assets have tremendous value, which is not reflected in our current share price, and we believe these actions will help realize that value.  We are working closely with our advisors to maximize shareholder value.”

The Company noted that there can be no assurance that the continuing strategic review process will result in a transaction or transactions.  This announcement fulfills the Company’s commitment to report the initial results of its strategic review process by January 31, 2016, and the Company will not necessarily report further on the progress of the process.

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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.