American Capital invests $89 million in buyout of Pasternack Enterprises

Fiber Optics Weekly Update, Dec 31, 2004

American Capital Strategies Ltd. announced that it has invested $89 million in the acquisition of Pasternack Enterprises, a manufacturer, marketer and value-added distributor of coaxial, fiber-optic connectors, adaptors, cables, and other related electronic parts. American Capital's investment takes the form of senior term debt, senior and junior subordinated debt and equity. American Capital is also providing a revolving credit facility. CEO Chuck Becker, an industry veteran, is also making a significant equity investment.

"Pasternack is American Capital's 13th buyout of 2004," said COO Ira Wagner. "We are backing a company that is very well known in the electronics industry. Pasternack occupies a unique market niche, effectively supplying competitively priced products to sophisticated customers who require rapid delivery."

American Capital has invested over $1.8 billion in the last twelve months, over $1.7 billion year to date and over $500 million quarter to date.

"It is widely said in the industry that Pasternack carries the broadest product offering," said Managing Director Frank Do. "Pasternack fills a distinctive niche, providing customers around the world a readily available source for RF coaxial and fiber optic products. The company's product breadth, quick turnaround capability, superior customer service, global reach and loyal customer base provides an excellent foundation for the attractive growth opportunities we will pursue. In addition, we are fortunate to be working with an experienced CEO and co-investor and a strong group of existing managers and staff members."

Pasternack, based in Irvine, California, was founded in 1972. Pasternack's product offering is the broadest in the RF and microwave industry. In addition, the company provides value-added cable assembly capabilities to its customers. Its diverse and growing product portfolio is sold into multiple end markets, including the military, telecommunications, instrumentation, computers and computer peripherals, consumer electronics, commercial aircraft, industrial equipment, and medical equipment. The company's products are used in such end-use products as electronic instruments, radar, and base stations for wireless networks, as well as transmitters for wireless LANs.

For more information, please go to www.pasternack.com.