Gladstone Investment Corporation Exits its Investment in Star Seed
Publicly traded middle-market business development firm Gladstone Investment Corporation sold its stake in seed distributor Star Seed to Sequel Holdings.
MCLEAN, Va., Jan. 02, 2019 (GLOBE NEWSWIRE) — Gladstone Investment Corporation (NASDAQ: GAIN) (“Gladstone Investment”) announced today the sale of its equity interest and the prepayment of its debt investment in Star Seed, Inc. (“Star Seed”) to Sequel Holdings, L.P on December 21, 2018. As a result of this transaction, Gladstone Investment realized a gain on its equity investment. Gladstone Investment acquired Star Seed in partnership with Broadgate Capital and ZJM Equity in 2013.
Star Seed, headquartered in Osborne, KS, is a leading seed distributor focused on native grasses, wildflowers, forages, cover crops, wheat, and other small grains. Through its ability to source a broad array of grasses and flowers, Star Seed has built a leading position in the conservation market in addition to its historical focus on agricultural products.
“Gladstone Investment has enjoyed a strong partnership with Star Seed’s management team over the last several years,” said Peter Roushdy, Managing Director of Gladstone Investment. “Star Seed’s deep sourcing relationships, premium seed quality, and quick turnaround have proven to be a winning formula. Eric Woofter, CEO, Bob Hamel, COO, and the entire management team have achieved outstanding results in both growing and transforming the business and we wish them continued success.”
“With the sale of Star Seed and from inception in 2005, Gladstone Investment has exited 16 of its management supported buy-outs, generating significant net realized gains on these investments,” said David Dullum, President of Gladstone Investment. “Our 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 provides meaningful value to shareholders.”
Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured 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 can be found at www.gladstoneinvestment.com.
