American Capital has completed the sale of its portfolio company Axygen BioScience, including its subsidiaries Axygen and Sorenson BioScience, to Corning for approximately USD400m.
American Capital has completed the sale of its portfolio company Axygen BioScience, including its subsidiaries Axygen and Sorenson BioScience, to Corning for approximately USD400m.
The total inception to date gain and income, including dividend and fee income, from the equity invested by American Capital’s affiliated funds under management was USD102m, representing a 25 per cent compounded annual rate of return.
American Capital received USD182m in proceeds and realized a gain of USD35m from the transaction, subject to post-closing adjustments.
American Capital’s total inception to date realized gains on this investment were USD36m and its compounded annual rate of return, including interest and fees earned over the life of its investment was 22 per cent.
Including investments in Axygen BioScience by American Capital’s affiliated funds under management, the inception to date realized gains were USD61m and the compounded annual rate of return was 22 per cent. The proceeds received by American Capital were less than the second quarter 2009 valuation of the investment by USD1m, or less than one per cent.
"Since the beginning of the fourth quarter of 2008, we’ve received approximately USD875m of proceeds from realizations of portfolio investment repayments and exits, including over 20 exits of portfolio companies," says Darin Winn, senior vice president and senior managing director. "We are particularly pleased that all of our exits of control companies have been at enterprise multiples equal to or higher than our entry multiples."
Axygen BioScience is a manufacturer and distributor of life sciences plastic consumables, liquid handling products and bench-top laboratory equipment.
"Over our three year investment in Axygen Bioscience, we have developed a great partnership with the management team and assisted in adding value to the company, enabling it to surpass its competition through growth and acquisitions," says Frank Do, managing director, buyouts. "We are extremely proud of the company’s improvements and success, which made it an attractive purchase for Corning Incorporated. The USD35m gain and 22 per cent return on the Axygen Bioscience investment is an outstanding outcome for American Capital and its shareholders and a testament to our investment and exit strategies."
American Capital invested in the One Stop Buyout of Axygen September 2006. Its investment took the form of a revolving credit facility, senior term loan, senior and junior subordinated debt and equity. In a series of transactions from November 2008 through March 2009, a new holding company, Axygen BioScience, was formed to include Axygen, Sorenson BioScience and Articles De Laboratoire De Precision.
