ECAS European Cap

    RNS Number : 4714E
  European Capital Limited
  26 September 2008
   

    First Floor, Dorey Court
Admiral Park, St. Peter Port
    Guernsey GY1 4AF
www.europeancapital.com




    FOR IMMEDIATE RELEASE
    26 September 2008

    Contact:
    
    
Giles Cheek, Director                                                                          +44 (0)20 7539 7000
Ivan Stoyanov, Investment Director                                                     +44 (0)20 7539 7000
Jennifer Burke, Corporate Communications                                     +1 301 951 6122
    
 
    EUROPEAN CAPITAL REALISES 53% EQUITY RETURN 
    FROM SALE OF PORTFOLIO COMPANY AVERY WEIGH-TRONIX 

    St. Peter Port, Guernsey - 26 September 2008 - European Capital Limited ("European Capital") (LSE: ECAS) announced today that it
realised a 53% annual equity rate of return from the sale of its portfolio company Avery Weigh-Tronix Holdings Limited ("Avery") to Illinois
Tool Works Inc. (NYSE: ITW).  The European Capital proceeds exceeded the second quarter 2008 valuation of its holding by EUR2 million, or
5%. 

    European Capital acquired Avery in July 2006 in a One Stop Buyout*, investing EUR123 million in a revolving credit facility, senior term
debt, subordinated debt, loan equity, preference equity and common equity.  In 2007, European Capital partially exited its investment in
Avery from the sale of the company*s retail weighing business. For more information about European Capital*s investment in Avery, go to
www.europeancapital.com/our_portfolio/companies/avery.html.    

    "We are pleased to announce the sale of Avery to ITW," said Ira Wagner, President of European Capital Financial Services Limited.  "The
outstanding gain on the Avery investment is a testament to European Capital's investment strategy carried out by our experienced investment
teams. These teams have done an excellent job selecting attractive investments in 89 portfolio companies and then, through the use of the
Operations Team, assisting the companies with a variety of improvements to enhance performance."

    Since inception, European Capital has earned an 18% compounded annual return, including interest, dividends, fees and net gains, on 31
portfolio company realisations of senior debt, subordinated debt and equity investments, totaling EUR1.2 billion of committed capital. 
These realisations represent 36% of all amounts committed by European Capital since inception.

    "We have been pleased to support the Avery business and its management, which has changed significantly during the period of our
ownership to become a more focused and efficient company," said Giles Cheek, Director of European Capital Financial Services.  "We wish
Avery's management team and employees continued success in the future."

    "We are delighted with the results of our investment in Avery," said Ivan Stoyanov, Investment Director of European Capital Financial
Services. "Led by its energetic management the company has exceeded our original projections, having achieved significant operational
improvements."

    "The Avery management team and employees look forward to the next phase of the company's development as part of ITW," said Jerry Bowe,
Chairman of Avery.  "With European Capital's support we have significantly streamlined our business in the past couple of years, building a
solid platform from which Avery will continue to grow."

    Avery is based in Smethwick, UK with major operations and manufacturing facilities in the USA, Canada, Malaysia, India and China.
Avery's industrial products include weighbridges, platform or deck scales, load cells, indicators and supporting software that serve
customers in a variety of end markets, including logistics and transportation, food processing, waste management, agriculture and general
manufacturing. In addition, the company provides aftermarket support services for its weighing products through one of the industry's
largest accredited service networks. The company employs over 1,500 people worldwide.

      
    ABOUT EUROPEAN CAPITAL
    European Capital (LSE: ECAS) is a publicly traded investment company for pan-European equity, mezzanine and senior debt investments with
current capital resources of approximately EUR2.4 billion ($3.5 billion). It is managed by European Capital Financial Services (Guernsey)
Limited ("ECFSG"), an indirect wholly-owned affiliate of American Capital Ltd. 

    European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital
directly to private and public companies headquartered primarily in Europe. European Capital generally invests between EUR5 million and
EUR500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalisations. 

    The investment objective of European Capital is to provide investors with dividend income and the potential for share value appreciation
by investing in debt and equity investments in private and public companies headquartered primarily in Europe. 
    European Capital seeks to achieve this through pursuing the following types of investments:


    European Capital One Stop Buyouts*
    Through our One Stop Buyouts*, European Capital provides equity, mezzanine debt and senior debt as the lead investor in the buyout of
private and public companies.

    Mezzanine Direct with Sponsors
    European Capital provides one stop financing of debt and equity financing for buyouts sponsored by private equity firms where European
Capital is either the sole or lead mezzanine debt investor.

    Syndicated Mezzanine and Senior Debt
    European Capital provides mezzanine and senior financing for buyouts sponsored by private equity firms where European Capital is neither
the sole nor lead mezzanine or senior debt investor.

    Direct Investments
    European Capital provides debt and equity financing directly to private and public companies, which is used for growth, acquisitions or
recapitalisations, and investing in structured finance vehicles.

    Companies interested in learning more about European Capital's flexible financing should contact Nathalie Faure Beaulieu at + 44 (0)20
7539 7000 in London, Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, Robert von Finckenstein at +49 (0) 69 71 71 297-0 in Frankfurt, or
Luis Felipe Castellanos at + (34) 91 423 27 60 in Madrid, or visit the website at www.EuropeanCapital.com.

    ABOUT AMERICAN CAPITAL
    American Capital (Nasdaq: ACAS), with $20 billion in capital resources under management1, is the only private equity fund and the
largest alternative asset management company in the S&P 500.  American Capital, both directly and through its global asset management
business, originates, underwrites and manages investments in private equity, leveraged finance, real estate and structured products. 
American Capital and its affiliates invest from $5 million to $800 million per company in North America and EUR5 million to EUR500 million
per company in Europe.  American Capital was founded in 1986 and currently has 13 offices in the U.S., Europe and Asia.  For further
information, please refer to www.americancapital.com. 

    1As of 30 June 2008.

    This press release contains forward-looking statements. The statements regarding expected results of European Capital and/or American
Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings,
changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in
the conditions of the industries in which European Capital and/or American Capital has made investments.


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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