Gladstone Capital buys Meridian

Gladstone Capital Corp. has acquired Meridian Rack & Pinion (which does business as Buy Auto Parts). The company invested $5.6 million to make the purchase and teamed up with Digital Fuel Capital and Meridian’s management for the transaction. Gladstone Investment Corp., an affiliate of Gladstone Capital, also participated as a co-investor by providing $13 million. Jean-Pierre Gilbertz, the founder of Meridian, will continue to hold a “sizeable” stake in Meridian. Based in San Diego, Meridian is a provider of aftermarket and OEM replacement automotive parts.


MCLEAN, Va., Jan. 13, 2014 /PRNewswire/ — Gladstone Capital Corporation (NASDAQ: GLAD) (“Gladstone Capital”) announced today that on December 27, 2013, it invested $5.6 million in a combination of debt and equity to purchase Meridian Rack & Pinion, Inc. (“Meridian”), doing business as 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, also continues to hold a sizeable stake in the company. One of Gladstone Capital’s affiliated companies, Gladstone Investment Corporation (NASDAQ: GAIN), also participated as a co-investor by providing $13.0 million of debt and equity financing on the same terms as Gladstone Capital.
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 Meridian distributes a targeted set of product lines, which include replacement turbochargers, air conditioning parts, steering racks, and suspension components.
“We believe that the 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 Capital Corporation is a publicly traded business development company that invests in debt and equity securities, consisting primarily of senior terms loans, second term lien loans, and senior subordinated terms loans in small and medium sized businesses in the United States in connection. Gladstone Capital has paid 123 consecutive monthly cash distributions on its common stock. Before the Company started paying monthly distributions, the Company paid eight consecutive quarterly cash distributions on its common stock. Additional information on this transaction can be found at
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