Gladstone Capital has invested $7 million in debt and equity to support the acquisition of Lignetics, a manufacturer of wood pellets, by Taglich Private Equity.
Lignetics manufactures and distributes branded wood pellets from its three US production facilities. The pellets are a renewable fuel for home and industrial heating, animal bedding under its “EZ Equine” brand, moisture absorption products used in fluid management in the energy production industry, and firelogs and fire starters through its “Pres-to-Logs” brand. The company was founded in 1983 and is headquartered in Sandpoint, ID (www.lignetics.com).
“Gladstone Capital appreciates the opportunity to invest in Lignetics, which is one of the largest pellet manufacturing companies in its industry segment. We look forward to working with Taglich and the Lignetics management team to support the continued growth of the business,” said John Freal, a Managing Director of Gladstone Capital Corporation.
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).
Taglich Private Equity makes equity investments of $3 million to $15 million in companies with revenues of $15 million to $150 million and EBITDAs of $5 million to $15 million. Sectors of interest include manufacturing, consumer products and business services. The group is the alternative investment arm of Taglich Brothers, a provider of services to microcap companies seeking to raise capital through private placements including secured notes, mezzanine financing, and preferred and common equity. Taglich Private Equity is based in New York (www.taglichpe.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-13-14
