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Gladstone invests USD13m in Meridian Rack & Pinion

Gladstone Investment Corporation has invested USD13m in a combination of debt and equity to purchase Meridian Rack & Pinion, 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, also participated as a co-investor by providing USD5.6m of debt and equity financing on the same terms as Gladstone Investment.
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," says 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," says Kyle Largent, managing director of Gladstone Investment and Gladstone Capital.

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