Gladstone Capital Acquires Meridian Rack & Pinion
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Gladstone Capital Acquires Meridian Rack & Pinion

buyauto nf2Gladstone Capital Corporation has invested $5.6 million in a combination of debt and equity to purchase Meridian Rack & Pinion (DBA Buy Auto Parts).

Gladstone Capital, 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, will continue to hold a sizeable stake in the company. One of Gladstone Capital’s affiliated companies, Gladstone Investment Corporation, also participated as a co-investor by providing $13 million of debt and equity financing on the same terms as Gladstone Capital.

Meridian Rack & Pinion 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. The company was founded in 1989 and is based in San Diego (ww.meridianautoparts.com).

“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 a publicly-traded business development company that makes debt and equity investments in US-based small to middle-market businesses. Target investments generally range from $5 million to $30 million in companies with over $3 million in EBITDA. Sectors of interest include light and specialty manufacturing, industrial products, business and government services, media and communications, consumer products and services, healthcare services, transportation, specialty chemicals and energy services. Gladstone is based in McLean, VA with additional offices in New York, Chicago, and Los Angeles (www.GladstoneInvestment.com).

“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.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-13-14

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