Gladstone Investment acquires rugged instruments maker Nielsen-Kellerman

Gladstone Investment Corporation (NASDAQ:GAIN) has announced the acquisition of Nielsen-Kellerman, Inc., marking a significant step in its strategy to bolster its portfolio with high-growth potential businesses. The transaction, completed on December 19, 2024, was executed in collaboration with Nielsen-Kellerman’s leadership team. Gladstone Investment provided both equity capital and senior secured debt to support the buyout, furthering its reputation for facilitating transformative deals in the lower-middle-market segment.

A Strategic Investment in Innovation

Nielsen-Kellerman is an industry leader in the design, manufacture, and distribution of rugged, waterproof environmental measurement and sports performance instruments. Its product lineup serves a diverse audience, including outdoor enthusiasts, competitive athletes, and technical professionals operating in demanding conditions. Known for brands such as Kestrel Weather & Environmental Meters, Kestrel Ballistics Meters, NK Electronics for water sports, and Blue Ocean Rugged Megaphones, the company has established itself as a trusted name in precision instrumentation.

Erika Highland, Senior Managing Director at Gladstone Investment, noted that Nielsen-Kellerman’s commitment to quality and innovation aligns seamlessly with Gladstone’s investment ethos. She explained that the company’s unique market position and reputation for durable, high-performance products provide an exceptional platform for growth. “Our investment aims to help Nielsen-Kellerman expand its market presence while enhancing its already impressive product offerings,” Highland stated.

Strengthening Market Presence

The acquisition underscores Gladstone Investment’s strategy of acquiring well-established companies with meaningful brands and robust management teams. David Dullum, President of Gladstone Investment, emphasized the importance of aligning with businesses that offer long-term value creation for shareholders. He described Nielsen-Kellerman as a “prime example of a business poised for expansion,” citing the company’s potential to capitalize on new market opportunities.

For Gladstone Investment, this acquisition represents more than just a financial transaction; it is a strategic partnership aimed at leveraging resources, expertise, and industry insights to drive mutual growth. By focusing on companies like Nielsen-Kellerman, which operate at the intersection of innovation and reliability, Gladstone continues to strengthen its position in the lower-middle market investment space.

Driving Value Through Precision

Nielsen-Kellerman’s products are renowned for their precision, durability, and adaptability to challenging environments. From Kestrel Ballistics Meters, designed to ensure long-range shooting accuracy, to NK Electronics, which support rowing and paddling enthusiasts, the company’s offerings are tailored to meet the specific needs of niche markets. This focus on customer-driven innovation has been a cornerstone of its success and a key reason for its appeal to Gladstone Investment.

The acquisition also reflects Gladstone’s confidence in Nielsen-Kellerman’s ability to innovate and expand. With access to new resources and financial support, the company is well-positioned to enhance its product lines, penetrate new markets, and solidify its leadership in precision instrumentation.

About Gladstone Investment

Gladstone Investment Corporation is a publicly traded business development company that specializes in equity and secured debt investments in lower-middle-market businesses. The firm’s investment strategy revolves around supporting acquisitions, management buyouts, and recapitalizations, with a focus on fostering growth and stability. By partnering with companies that exhibit strong brand recognition and growth potential, Gladstone Investment aims to create sustainable value for its shareholders.

The acquisition of Nielsen-Kellerman underscores Gladstone Investment’s commitment to identifying and supporting companies with a proven track record of success. This strategic partnership is expected to open new avenues for growth, innovation, and market expansion, benefiting both Nielsen-Kellerman and Gladstone’s stakeholders.