American Capital
American Capital | Private Equity Profile
The following piece on American Capital is being published as part of our Private Equity Tracker Tool, our daily effort to track private equity firms in the industry. American Capital (ACAS) is a publicly-listed private equity firm managing $11 billion in capital resources.Resource #1: Another addition to the graveyard of busted mergers: business development company American Capital Strategies (ACAS) has terminated its agreement to buy Merisel (MSEL.PK) under the “material adverse change” clause that has become a standard excuse for buyer’s remorse. After the exchange of multiple letters between the two firms, Merisel stock reacted predictably with a steep drop and now has a market capitalization below its net cash, despite generating positive earnings and cash flow in 2007.
Merisel started as a hardware retailer and sold its last IT-related business among controversy in 2004. It entered the visual communications business in 2005 and has since rolled-up various specialty print, graphics and imaging firms. Its sudden urge to merge is triggered by the upcoming liquidation of its principal shareholder, private equity fund Stonington Partners, L.P., owner of 60% of Merisel’s shares. (The current edition of Barron’s claims incorrectly that ACAS owns 60%. Rather, ACAS had to report control over 60% in its 13D because Stonington agreed to vote its shares in favor of the ACAS merger.) Source
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Tags: American Capital, American Capital Partners, American Capital Management, ACAS, American Capital investments, holdings, private equity firm, manager, investors
Link to This Resource: American Capital | Private Equity
http://privateequityblogger.com/2007/08/american-capital-private-equity.html