BETHESDA, Md. -- American Capital Strategies Ltd. announced that it has invested $32.8 million to recapitalize Halex Corporation, the leading manufacturer and distributor of carpet tackstrips, plywood underlayment and other flooring installation supplies.

American Capital's investment takes the form of senior subordinated notes and preferred stock. Antares Capital Corporation provided a senior term loan and revolving credit facility and also purchased preferred stock.

Halex's founders will own a significant interest in the recapitalized company and will continue in their current roles.

Halex, founded to manufacture carpet tack strip in 1990, now produces and sources a range of carpet installation supplies, purchasing and selling through global networks. The company employs over 150 people in its Pomona, Calif. facility and has seen sales steadily and significantly increase.

"Halex is now in a better position to refine its proprietary production machinery to suit the demands of a global marketplace," said Halex President Craig Silvers. "We are confident that the partnership strengthens our company and our ability to pursue new opportunities in existing and new markets."