European Capital Invests 29 Million Euro in Buyout of Soflog-Telis

12/09/2007 20:56



PR Newswire



ST. PETER PORT, Guernsey, September 12 /PRNewswire/ --
European Capital S.A. SICAR, a wholly-owned subsidiary of European Capital Limited (LSE: ECAS) ("European Capital") announced today that it, together with ECAS S.a.r.l. and ECAS II S.a.r.l., has invested 29 million euro in the buyout of Soflog-Telis, a leading provider of logistics services to major industrial customers in France. The investment was led by the Paris office of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital, and takes the form of equity and senior and junior mezzanine debt. Following the investment, European Capital and the Soflog-Telis' management team led by Bruno de Chaisemartin, former Chairman, are the majority shareholders of Soflog-Telis with a combined 55% ownership. 3i maintains its current 45% stake in Soflog-Telis.

"We are very proud to support Soflog-Telis. The Company has successfully implemented a unique business model in the industrial logistics sector in France and has a large offering of business services for the industrial supply chain," said Jean Eichenlaub, Managing Director of European Capital Services.

"Bruno de Chaisemartin is a highly successful manager with a deep knowledge of the logistics outsourcing sectors. Soflog-Telis' attractive business model is centered on its operational flexibility and national network, which provides effective and rapid response to industrial demand fluctuations as companies are increasingly willing to outsource their industrial logistics," said Tristan Parisot, Director of European Capital Services. "This majority buyout alongside Soflog-Telis CEO Bruno de Chaisemartin and his management team will enable Soflog-Telis to remain independent while providing the group the resources to pursue its growth strategy."

Founded in 1952, Soflog-Telis is the leading provider of outsourced industrial logistics to over 2,100 customers, among them many blue chip industrial companies operating within a diversity of end-markets, including aerospace, naval, energy, telecom, medical, automotive and transportation. Soflog-Telis provides a comprehensive range of logistics services which allow customers to focus on their core-business while outsourcing and lowering logistics costs. The Company's services include upstream operations, production line operations and downstream operations. Soflog grew at approximately 10% annually between 2003 and 2006 when it acquired Groupe Telis, another fast-growing supplier of logistics services. This build-up doubled the size of the group which now reaches 158 million euro revenues. Soflog-Telis is based in Asnieres, near Paris, and has 52 leased sites nationwide, 6 sites situated within client facilities, and more than 1,800 employees.

"European Capital stands out with its flexibility, speed and dedication to working closely with management teams," said Bruno de Chaisemartin, new CEO of Soflog-Telis. "The Company has enjoyed a solid organic growth over the last 5 years and I am very excited to pursue this adventure with the existing team. The growth potential of Soflog-Telis is strongly supported by the outsourcing trend in France and its ability to provide quality, customized logistics solutions at a local level is a significant advantage."

"Soflog-Telis now aims to extend its offer of services to its industrial customers by offering new added-value services, such as specific packaging, outsourced control, and reverse logistics offer," continued Mr. de Chaisemartin. "Soflog-Telis offers its customers innovative and customized solutions with high level quality and closed follow-up. This strategy will enable the group to increase its presence in aerospace, medical, energy and railway sectors."

ABOUT EUROPEAN CAPITAL
European Capital is a publicly traded company for pan-European equity, mezzanine and senior debt investments with capital resources of approximately 2.3 billion euro (US$3.2 billion). 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 predominantly in Europe. European Capital generally invests between 15 million euro and 500 million euro per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.

European Capital has invested over 1.7 billion euro (US$ 2.3 billion) in the last twelve months, 1.3 billion euro (US$ 1.7 billion) year to date and 304 million euro (US$ 419 million) quarter to date. For more information about European Capital's portfolio, go to
http://www.ecas.com/our_portfolio/portfolio.html

Companies interested in learning more about European Capital's flexible financing should contact Jean Eichenlaub at +33-(0)-1-40-68-06-66 in Paris, Nathalie Faure Beaulieu or Simon Henderson at +44-(0)-20-7539-7000 in London, Robert von Finckenstein at +49-(0)-69-7171-2970 in Frankfurt, or Luis Felipe Castellanos at +34-91-745-99-63 in Madrid, or visit the website at http://www.EuropeanCapital.com .

ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. (Nasdaq: ACAS) is an affiliate of European Capital and the only alternative asset management company that is a member of the S? 500. With US$17 billion in assets under management(1), American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from US$5 million to US$800 million per company in North America and 5 million euro to 500 million euro per company in Europe.

(1) Assets Under Management is an estimate of internally and externally managed assets as of July 31, 2007 and does not include any fair value adjustments subsequent to June 30, 2007.

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.

Web site: http://www.EuropeanCapital.com
http://www.americancapital.com

Jean Eichenlaub, Managing Director, Tristan Parisot, Director, or Marie Bal, Communication Manager, all of European Capital Services, +33-0-1-40-68-06-66