MCLEAN, Va. – Gladstone Capital Corp., a publicly traded business development company, announced it has invested $5.6 million in a combination of debt and equity to purchase Meridian Rack & Pinion Inc., 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 Corp., 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, Calif., Meridian 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.
"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 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.
