MCLEAN, Va., Jan. 13, 2014
/PRNewswire/ -- Gladstone Investment Corporation (NASDAQ:
GAIN) ("Gladstone Investment") announced today that on December 27, 2013, it invested $13.0 million in a combination of debt and equity
to purchase Meridian Rack & Pinion, Inc. ("Meridian"), doing business as Buy Auto
Parts. Gladstone Investment, together with Digital Fuel
Capital, a private equity firm focused on e-commerce and digital
marketing, and Meridian's existing
management team provided the capital in support of the acquisition
of the business. Jean-Pierre
Gilbertz, the founder of Meridian, also continues to hold a sizeable
stake in the company. One of Gladstone Investment's
affiliated companies, Gladstone Capital Corporation (NASDAQ: GLAD),
also participated as a co-investor by providing $5.6 million of debt and equity financing on the
same terms as Gladstone Investment.
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Founded in 1989 and based in San
Diego, CA, Meridian is a
provider of aftermarket and OEM replacement automotive parts, which
it sells through both wholesale channels and online at
www.BuyAutoParts.com. Meridian distributes a targeted set of product
lines, which include replacement turbochargers, air conditioning
parts, steering racks, and suspension components.
"We believe that the www.BuyAutoParts.com model of product
category depth, in-stock inventory and expert live sales support is
the winning formula for the on-line auto parts channel, which has
significant opportunity for further penetration in the auto parts
industry," said Carson Biederman,
President of Digital Fuel Capital. "We look forward to
supporting Meridian's expansion
into other product categories and geographies through both organic
growth and acquisitions."
"Gladstone is excited to
partner with Digital Fuel and the talented management team at
Meridian. We look forward to
continued growth and expansion, building on the success the
management team has achieved over the past few years," said
Kyle Largent, Managing Director of
Gladstone Investment and Gladstone Capital.
Gladstone Investment Corporation is a publicly traded business
development company that seeks to make debt and equity investments
in small and mid-sized businesses in the
United States in connection with acquisitions, changes in
control and recapitalizations. Gladstone Investment has paid 102
consecutive monthly cash distributions on its common stock.
Additional information on this transaction can be found at
www.gladstonecompanies.com.
For Investor Relations inquiries related to any of the monthly
dividend paying Gladstone funds,
please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the
longer-term prospects of Meridian
and its management team, and the ability of Meridian to grow and expand are
"forward-looking statements." These forward-looking statements
inherently involve certain risks and uncertainties in predicting
future results and conditions. Although these statements are based
on Gladstone Investment's current plans that are believed to be
reasonable as of the date of this press release, a number of
factors could cause actual results and conditions to differ
materially from these forward-looking statements, including those
factors described from time to time in Gladstone Investment's
filings with the Securities and Exchange Commission.
Gladstone Investment undertakes no obligation to
publicly release the result of any revisions
to these forward looking statements that may
be made to reflect any future events or otherwise,
except as required by law.
SOURCE Gladstone Investment Corporation