Gladstone Investment Corporation announced a definitive agreement to acquire Rowan Energy, Inc., a provider of advanced frac sand filtration, completion‑equipment deployment, and field‑operations support for the oil‑and‑gas industry. The deal is being financed with senior secured debt and a majority equity stake, a structure that gives Gladstone a controlling position while maintaining a disciplined capital profile.
The transaction expands Gladstone’s portfolio into the energy services sector, adding a lower‑middle‑market company that complements its existing diversified services and aerospace/defense holdings. By combining debt and equity, Gladstone follows its core strategy of creating value through operational influence and financial leverage.
Rowan Energy’s business model centers on delivering specialized equipment and support services to drilling and completion operations. The acquisition is expected to generate dividend income and long‑term capital appreciation for Gladstone, consistent with the firm’s focus on lower‑middle‑market businesses that offer growth potential and operational upside.
The transaction is being conducted in partnership with Xyresic Capital, an independent sponsor founded in 2020 that has a track record of partnering with Gladstone on lower‑middle‑market deals, including the May 2025 acquisition of Smart Chemical Solutions. Xyresic’s operational expertise is expected to help accelerate integration and unlock synergies.
Deal terms, including the purchase price, have not been disclosed. The parties anticipate closing the transaction in the coming months, subject to regulatory approvals and customary closing conditions. The lack of a disclosed value reflects the private‑market nature of the deal.
Gladstone’s President, David Dullum, said the acquisition aligns with the company’s strategy of pursuing investments that provide dividend income and potential for capital appreciation. Senior Managing Director Christopher Lee highlighted Rowan’s commitment to delivering outstanding solutions and expressed excitement about expanding the relationship with Xyresic Capital.
The acquisition is part of Gladstone’s broader effort to diversify its portfolio and invest in businesses that offer operational leverage and growth opportunities. The firm’s recent capital‑structure moves, including a $60 million offering of 6.875% notes due 2028 and a planned redemption of $74.75 million of 8.00% notes due 2028, demonstrate its disciplined approach to financing.
While the transaction does not yet have a disclosed financial impact on Gladstone’s earnings, the strategic rationale suggests a focus on long‑term value creation through control and operational improvement in a sector that remains critical to the energy industry.
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