Gladstone Investment Completes Acquisition of Smart Chemical Solutions

Gladstone Investment Corporation (NASDAQ:GAIN) has announced the acquisition of Smart Chemical Solutions, LLC, in partnership with Xyresic Capital. To support the deal, Gladstone Investment provided both equity and senior secured debt financing.

Gladstone Investment Corporation (NASDAQ:GAIN) is a publicly traded business development company that focuses on investing in lower middle market businesses through equity and secured debt, particularly during acquisitions, ownership transitions, and recapitalizations.

Smart Chemical, headquartered in Midland, Texas, supplies production chemicals to onshore oil and gas operators. Christopher Lee, Senior Managing Director of Gladstone Investment, stated:

“Smart Chemical is a valuable partner to major energy companies operating throughout the United States. We are very excited to partner with this talented team as it accelerates its growth strategy, expands its product portfolio, and strengthens its ability to serve operators across the energy sector. Further, we are thrilled to expand our relationship with Xyresic.”

The recent acquisition aligns with Gladstone Investment Corporation (NASDAQ:GAIN)’s broader investment approach. In its FY25 earnings, the company reported allocating a total of $21.9 million across its portfolio companies to support add-on acquisitions, using both first and second-lien secured debt.

The company’s acquisition-driven approach has also supported its dividend performance. Since 2005, Gladstone Investment Corporation (NASDAQ:GAIN) has consistently issued monthly dividend payments, gradually increasing the payout from $0.02 to $0.08 per share over time. David Dullum, President of the company, made the following comment regarding this:

“This investment represents our dedication to our ultimate goal of investing in quality companies that will produce stable income for dividends to Gladstone Investment’s shareholders, as well as longer-term capital appreciation resulting in capital gains.”

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