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Gladstone Investment (Nasdaq:GAIN) has announced a definitive agreement to acquire Ricardo Defense, Inc. (RDI) in partnership with Proteus Enterprises The transaction, signed on December 13, 2024, is expected to close by December 31, 2024. Gladstone Investment will provide both equity and senior secured debt financing for the acquisition.
You are viewing: Gladstone Investment to Acquire Defense Contractor Ricardo Defense in Strategic Expansion Deal
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.
Gladstone Investment (Nasdaq:GAIN) ha annunciato un accordo definitivo per acquisire Ricardo Defense, Inc. (RDI) in collaborazione con Proteus Enterprises. La transazione, firmata il 13 dicembre 2024, dovrebbe chiudersi entro il 31 dicembre 2024. Gladstone Investment fornirà sia finanziamenti in equity che debito senior garantito per l’acquisizione.
RDI, con sede a Troy, Michigan, è specializzata in servizi di ingegneria e integrazione di sistemi, concentrandosi sulla modernizzazione e le soluzioni di manutenzione della flotta del Dipartimento della Difesa. Si prevede che l’acquisizione generi reddito da dividendi per gli azionisti e un’apprezzamento del capitale nel lungo termine attraverso guadagni patrimoniali.
Gladstone Investment (Nasdaq:GAIN) ha anunciado un acuerdo definitivo para adquirir Ricardo Defense, Inc. (RDI) en colaboración con Proteus Enterprises. La transacción, firmada el 13 de diciembre de 2024, se espera que se cierre antes del 31 de diciembre de 2024. Gladstone Investment proporcionará tanto financiamiento en capital como deuda senior garantizada para la adquisición.
RDI, con sede en Troy, Michigan, se especializa en servicios de ingeniería e integración de sistemas, enfocándose en la modernización de flotas y soluciones de mantenimiento para el Departamento de Defensa. Se espera que la adquisición genere ingresos por dividendos para los accionistas y una apreciación de capital a largo plazo a través de ganancias de capital.
글래드스톤 인베스트먼트 (Nasdaq:GAIN)는 프로테우스 엔터프라이즈와 협력하여 리카르도 디펜스, Inc. (RDI)를 인수하기 위한 최종 계약을 체결했다고 발표했습니다. 2024년 12월 13일에 체결된 이번 거래는 2024년 12월 31일까지 마무리될 것으로 예상됩니다. 글래드스톤 인베스트먼트는 인수를 위해 주식과 선순위 담보부채를 모두 제공할 것입니다.
미시간주 트로이에 본사를 두고 있는 RDI는 방위부의 함대 현대화 및 유지보수 솔루션에 중점을 둔 엔지니어링 서비스 및 시스템 통합 전문 기업입니다. 이 인수는 주주들에게 배당 수익과 장기적인 자본 이익을 통해 자본의 가치 상승을 가져올 것으로 기대됩니다.
Gladstone Investment (Nasdaq:GAIN) a annoncé un accord définitif pour acquérir Ricardo Defense, Inc. (RDI) en partenariat avec Proteus Enterprises. La transaction, signée le 13 décembre 2024, devrait se clôturer d’ici le 31 décembre 2024. Gladstone Investment fournira à la fois un financement en capitaux propres et une dette senior sécurisée pour cette acquisition.
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RDI, dont le siège est situé à Troy, dans le Michigan, se spécialise dans les services d’ingénierie et l’intégration de systèmes, en se concentrant sur la modernisation de flotte et les solutions de maintenance pour le Département de la Défense. L’acquisition devrait générer à la fois des revenus de dividendes pour les actionnaires et une appréciation du capital à long terme grâce à des gains en capital.
Gladstone Investment (Nasdaq:GAIN) hat eine definitive Vereinbarung zur Akquisition von Ricardo Defense, Inc. (RDI) in Partnerschaft mit Proteus Enterprises bekannt gegeben. Die Transaktion, die am 13. Dezember 2024 unterzeichnet wurde, wird voraussichtlich bis zum 31. Dezember 2024 abgeschlossen sein. Gladstone Investment wird sowohl Eigenkapital als auch senior gesicherte Schulden für die Akquisition bereitstellen.
RDI, mit Hauptsitz in Troy, Michigan, ist auf Ingenieurdienstleistungen und Systemintegration spezialisiert und konzentriert sich auf die Modernisierung und Wartung von Flotten des Verteidigungsministeriums. Es wird erwartet, dass die Akquisition sowohl Dividenden für die Aktionäre als auch eine langfristige Kapitalaufwertung durch Kapitalgewinne generiert.
Positive
- Acquisition provides both dividend income and potential capital gains for shareholders
- Company expands into defense sector through established contractor
- Deal structure includes both equity and secured debt components, providing multiple revenue streams
Negative
- Acquisition price and financial terms not disclosed
- Return on investment timeline uncertain
Insights
The timing of this acquisition, scheduled to close by year-end, suggests careful tax planning and potential immediate impact on GAIN’s 2025 financial performance. RDI’s engineering services and systems integration capabilities in the defense sector position it well for growth, particularly given the current global geopolitical climate and increasing defense modernization budgets.
For GAIN shareholders, this investment aligns with the BDC’s dual-return strategy:
- Regular dividend income through RDI’s expected operational cash flows
- Potential capital gains through business value appreciation
The defense sector’s high barriers to entry and long-term contracts provide stability, while modernization initiatives could drive growth opportunities.
The company’s location in Troy, Michigan, places it within the heart of America’s automotive and defense corridor, providing access to specialized talent and proximity to major defense contractors. The retention of President Chet Gryczan indicates commitment to operational continuity, important for maintaining existing DoD relationships and contract execution.
Current defense spending trends favor companies like RDI that focus on fleet modernization and maintenance efficiency. The DoD’s push for digital transformation in vehicle maintenance and management systems creates significant growth potential for firms with proven integration capabilities. Recent defense authorization bills have emphasized the need for improved fleet readiness and maintenance efficiency, aligning perfectly with RDI’s core competencies.
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MCLEAN, VA / ACCESSWIRE / December 19, 2024 / Gladstone Investment Corporation (Nasdaq:GAIN) (“Gladstone Investment”) announced today that on December 13, 2024, it, along with Proteus Enterprises LLC, signed a definitive agreement to acquire Ricardo Defense, Inc. (“RDI”).Final closing is anticipated for December 31, 2024, once all customary closing conditions have been satisfied. Gladstone Investment will provide 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
When will Gladstone Investment (GAIN) complete the Ricardo Defense acquisition?
The acquisition is expected to close on December 31, 2024, subject to customary closing conditions.
What type of financing is GAIN providing for the Ricardo Defense acquisition?
Gladstone Investment is providing both equity and senior secured debt to complete the transaction.
How will the Ricardo Defense acquisition benefit GAIN shareholders?
The acquisition is expected to generate both dividend income for shareholders and longer-term capital appreciation through capital gains.
What is Ricardo Defense’s primary business focus?
Ricardo Defense is an engineering services and systems integration firm that helps Department of Defense customers with fleet modernization, management, and maintenance solutions.
Who are the partners in the Ricardo Defense acquisition?
Gladstone Investment is partnering with Proteus Enterprises to acquire Ricardo Defense.
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