Gladstone Investment Corporation Acquires the Ricardo Defense Business
Rhea-AI Summary
Gladstone Investment (NASDAQ:GAIN) has announced its acquisition of Ricardo Defense Systems, and Ricardo Defense, Inc. (RDI), along with Proteus Enterprises The transaction was financed through a combination of equity and senior secured debt provided by Gladstone Investment.
RDI, headquartered in Troy, Michigan, specializes in engineering services and systems integration, focusing on Department of Defense fleet modernization and maintenance solutions. The acquisition is expected to generate both dividend income for shareholders and long-term capital appreciation through capital gains.
The deal adds RDI as a portfolio company to Gladstone Investment's assets, with plans to expand the company's established presence and continue delivering innovative solutions to its customers under the leadership of President Chet Gryczan and the RDI team.
Positive
- Strategic acquisition in the defense sector with established DoD contracts
- Expected to generate both dividend income and capital appreciation for shareholders
- Acquisition funded through a combination of equity and secured debt, indicating financial flexibility
Negative
- Acquisition price and financial terms not disclosed
- Integration risks with existing portfolio
News Market Reaction 1 Alert
On the day this news was published, GAIN declined 0.08%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MCLEAN, VA / ACCESSWIRE / January 2, 2025 / Gladstone Investment Corporation (NASDAQ:GAIN) ("Gladstone Investment") is pleased to announce its acquisition of Ricardo Defense Systems, LLC and Ricardo Defense, Inc. (collectively, "RDI"), along with Proteus Enterprises LLC. Gladstone Investment provided equity and senior secured debt to complete the transaction.
RDI, based in Troy, Michigan, is an engineering services and systems integration firm focused on helping Department of Defense customers solve technical hurdles to modernizing, managing, and maintaining the fleet. "We are looking forward to working with Proteus, President Chet Gryczan and the team at RDI to build on the company's established presence and to continue bringing innovative solutions to its customers," said Christopher Lee, Senior Managing Director of Gladstone Investment.
"We are thrilled to be adding another quality portfolio company to Gladstone Investment's assets through this acquisition, as we expect it to produce both income for dividends to shareholders and longer-term capital appreciation for capital gains," said David Dullum, President of Gladstone Investment.
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in connection with acquisitions, changes in control, and recapitalizations. Additional information on the transaction can be found at www.gladstoneinvestment.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 Gladstone Investment and RDI and its management team, and the ability of Gladstone Investment and RDI 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 update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
SOURCE: Gladstone Investment Corporation
View the original press release on accesswire.com
FAQ
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