MCLEAN, Va., June 04, 2018 (GLOBE NEWSWIRE) -- Gladstone Investment Corporation (NASDAQ:GAIN) ("Gladstone Investment") announced today the sale of its equity interest and the prepayment of its debt investments in Drew Foam Companies, Inc. ("Drew Foam") to a private equity firm. As a result of this transaction, Gladstone Investment realized a significant gain on its equity investment.
Drew Foam, headquartered in Monticello, AR, is a market leading designer, molder and fabricator of expanded polystyrene foam products used in industrial, construction, cold chain pharmaceutical and food applications and consumer markets.
"Gladstone Investment has thoroughly enjoyed our partnership with the Drew Foam management team during the life of our investment. The management team, led by Bill Givens, achieved outstanding results in both growing and transforming the business since August 2012. We wish the Drew Foam team continued success," said Greg Bowie, Director, Private Equity, of Gladstone Investment's investment adviser.
"With the sale of Drew Foam and from inception in 2005, Gladstone
Investment has exited 13 of its management supported buy-outs realizing significant net realized gains on these investments. These realized gains are a result of Gladstone Investment's strategy and capability as a buyout fund and our investment approach of realizing gains on equity, while generating strong current income during the investment period," said David Dullum, President of Gladstone Investment.
Gladstone Investment Corporation is a publicly traded business development company that seeks to make debt and equity investments in lower middle market private businesses in the United States 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 distribution-paying Gladstone family of funds, please visit www.gladstonecompanies.com.
The statements in this press release regarding the longer-term prospects of Gladstone Investment and Drew and its management team, and the ability of Gladstone Investment and Drew to be successful in the future 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 beliefs 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.
SOURCE: Gladstone Investment Corporation
For further information: Gladstone Investment Corporation, 703-287-5893
Source: Gladstone Investment Corporation
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