American Capital and its affiliated funds under management have received USD12 million in equity proceeds, subject to customary post-closing adjustments, of which approximately USD7 million went to American Capital, from the sale of portfolio company Sixnet Holdings LLC (Sixnet) to Spectris plc for USD72 million. In addition to the equity proceeds, American Capital’s USD37 million senior debt investments were repaid in full.
American Capital originally invested in the recapitalisation of Sixnet in 2005. In 2007, American Capital and its affiliated funds under management invested in Sixnet to support the acquisition of BlueTree Wireless Data Inc., a leading supplier of machine to machine (M2M) cellular data products. In 2009, American Capital and its affiliated funds under management invested in Sixnet to support the acquisition of JBM Electronics Co., a leading designer and manufacturer of cellular routers and related products used in fixed wireless applications.
American Capital’s compounded annual rate of return earned over the life of its total investment was 15%, including interest, dividends, fees and expected remaining proceeds held in Sixnet Member Corp.
Celebrating 35 years in operation, Ballston Lake, NY-based Sixnet designs, manufactures and markets rugged Ethernet switches, automation devices, cellular remote terminal units and wireless connectivity products for the industrial and process control markets. Spectris plans to make Sixnet part of its Red Lion Controls business in the Industrial Controls segment.
"We are pleased with the results of this transaction, which showcases our ability to provide flexible capital solutions and support our portfolio companies as they make accretive acquisitions and pursue various organic growth opportunities," says Brian Graff, Senior Managing Director. "With seven offices in the US and Europe, we continue to seek new One-Stop Buyout opportunities of up to USD300 million, as well as senior debt, subordinated debt, unitranche and equity co-invest opportunities from USD10 million to USD100 million."
"Our investment in Sixnet produced an attractive return for American Capital’s shareholders, which is a testament to the success of Sixnet, its leading industrial networking products and strong management team," says Eugene Krichevsky, Principal. "We believe that Sixnet is a great fit with Spectris and its Red Lion Controls business and wish the company continued success in the future."
