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Gladstone (GAIN) Announces Sale of Head Country Portfolio
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Gladstone Investment Corporation (GAIN - Free Report) is selling its portfolio company, Head Country, Inc., realizing a significant capital gain on its investment. The company had acquired Head Country as a management buyout deal in 2014, providing the capital comprising preferred and common equity, senior debt and a revolving credit facility.
Founded in 1977, with headquarters in Ponca City, OK, Head Country is a pioneer in manufacturing a leading barbecue sauce as well as marinades and seasonings. Per the executive vice president and senior managing director of Gladstone, Kyle Largent, the company worked with the Head Country management team in the past seven years and provided full support in taking the brand to new heights, along with boosting its customer base.
As per the president of Gladstone, David Dullum, the company has exited more than 20 of its management-aided buyouts, mustering meaningful realized gains on its investments, since the inception in 2005.
He further noted, “Our strategy as a buyout fund, realizing gains on equity, while also generating strong current income during the investment period from debt investments alongside our equity investments, provides meaningful value to shareholders through stock appreciation and dividend growth. Investments like Head Country prove out our focus on buying high quality businesses, backing outstanding management teams and our ability to be patient through longer hold periods."
According to the company’s report, the sale of 23 portfolio companies which Gladstone acquired under its buyout strategy from 2005 through March 31, 2021, has generated $238.4 million in net realized gains and $31.4 million in other income upon exit. We believe these investment successes aid the company in its endeavor to achieve returns via current income on the debt portion of its investments and capital gains from the equity portion.
In the past six months, shares of Gladstone have gained 40.7% compared with 20.6% growth recorded by the industry.
Barings BDC, Inc. (BBDC - Free Report) has been witnessing 1.1% upward earnings estimate revisions for the past 60 days, with the company’s shares jumping 15.9%, year to date. The stock carries a Zacks Rank of 2, at present.
Fidus Investment Corporation’s (FDUS - Free Report) estimate moved 3.2% north in 60 days’ time. The company’s shares have gained 30.7%, year to date. Currently, it carries a Zacks Rank of 2.
Bain Capital Specialty Finance, Inc. (BCSF - Free Report) has been witnessing marginal upward earnings estimate revisions for the past 60 days, with the company’s shares appreciating 25.8%, year to date. The stock carries a Zacks Rank of 2, at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Gladstone (GAIN) Announces Sale of Head Country Portfolio
Gladstone Investment Corporation (GAIN - Free Report) is selling its portfolio company, Head Country, Inc., realizing a significant capital gain on its investment. The company had acquired Head Country as a management buyout deal in 2014, providing the capital comprising preferred and common equity, senior debt and a revolving credit facility.
Founded in 1977, with headquarters in Ponca City, OK, Head Country is a pioneer in manufacturing a leading barbecue sauce as well as marinades and seasonings. Per the executive vice president and senior managing director of Gladstone, Kyle Largent, the company worked with the Head Country management team in the past seven years and provided full support in taking the brand to new heights, along with boosting its customer base.
As per the president of Gladstone, David Dullum, the company has exited more than 20 of its management-aided buyouts, mustering meaningful realized gains on its investments, since the inception in 2005.
He further noted, “Our strategy as a buyout fund, realizing gains on equity, while also generating strong current income during the investment period from debt investments alongside our equity investments, provides meaningful value to shareholders through stock appreciation and dividend growth. Investments like Head Country prove out our focus on buying high quality businesses, backing outstanding management teams and our ability to be patient through longer hold periods."
According to the company’s report, the sale of 23 portfolio companies which Gladstone acquired under its buyout strategy from 2005 through March 31, 2021, has generated $238.4 million in net realized gains and $31.4 million in other income upon exit. We believe these investment successes aid the company in its endeavor to achieve returns via current income on the debt portion of its investments and capital gains from the equity portion.
In the past six months, shares of Gladstone have gained 40.7% compared with 20.6% growth recorded by the industry.
Currently, Gladstone carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider
Barings BDC, Inc. (BBDC - Free Report) has been witnessing 1.1% upward earnings estimate revisions for the past 60 days, with the company’s shares jumping 15.9%, year to date. The stock carries a Zacks Rank of 2, at present.
Fidus Investment Corporation’s (FDUS - Free Report) estimate moved 3.2% north in 60 days’ time. The company’s shares have gained 30.7%, year to date. Currently, it carries a Zacks Rank of 2.
Bain Capital Specialty Finance, Inc. (BCSF - Free Report) has been witnessing marginal upward earnings estimate revisions for the past 60 days, with the company’s shares appreciating 25.8%, year to date. The stock carries a Zacks Rank of 2, at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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