MCLEAN, VA -- Wood pellet manufacturer Lignetics, Inc. was acquired by Taglich Private Equity, with $7 million in investment from Gladstone Capital Corp. (NASDAQ: GLAD).

The deal closed March 11. Founded in 1983 and headquartered in Sandpoint, ID, Lignetics manufactures and distributes branded wood pellets from three U.S. factories. The pellets are for home and industrial heating, animal bedding under its "EZ Equine" brand, moisture absorption products used in fluid management in the energy production, and firelogs and fire starters through its "Pres-to-Logs" brand.

Lignetics is one of the largest pellet manufacturing companies in its segment, says John Freal, managing director at Gladstone. "We look forward to working with Taglich and the Lignetics management team to support the continued growth of the business," said Freal.  

Wood pellet manufacturing has been a growth busines. The processes wood products have become popular as an alternative to coal.

Gladstone held an equity position in wood component manufacturer Northern Contours, and had a stake in Chase Doors from 2006 through 2010.