A recent investment in connection with the Kentucky New Markets Development Program will help FIAT Products stay in Somerset, transition to American-owned company.
Advantage Capital, a venture capital firm, small business lender, and impact investor, announced today a $7.5 million investment in FIAT Products to finance an acquisition that will transition the company to an American-owned business, allowing it to expand in Somerset through product and job growth as well as community involvement. The company expects to bring at least 63 local positions to the area in the next three years.
FIAT, a manufacturer of terrazzo mop basins, shower floors, and laundry tubs currently occupies a 268,000 sq. ft. facility in Somerset. The company is also the market leader in the U.S. light commercial plumbing product space.
“This financing could not be more important,” said Joe Poskin, Owner and CEO. “With this acquisition we are able to onshore the ownership of the company and make sure we are able to preserve important jobs here in the Somerset community.”
The financing was made in connection with the Kentucky New Markets Development Program (NMDP). The program was first adopted in 2010 and was created to attract and encourage investment in Kentucky’s low-income communities. This private investment fills the gap of financing that exists for many businesses in low-income areas, in turn sparking business expansion, new jobs, community revitalization and economic development.
“The New Markets Development Program has made tremendous investment in rural and distressed communities across the state, helping to bring new businesses along with much needed job opportunities,” Kentucky State Senator Rick Girdler said. “New Markets made a substantial investment of $7.5 million to bring the FIAT Products manufacturing plant to Somerset and the jobs it will provide will boost our community’s economy. I am beyond excited for my hometown and the opportunity this opening presents for so many families.”
The investment by Advantage Capital provided the flexible terms needed to ensure a successful acquisition could be executed—assuring FIAT’s longevity in Somerset.
“With our participation in the KY New Markets Development Program, we can provide capital to growing businesses across Kentucky that otherwise may not have access to it,” said Tim Perusek, Principal, Advantage Capital. “Our financial solutions are customized for the businesses in which we invest, allowing companies that are poised for growth to expand, hire new employees, and in turn, grow local economies.”
Advantage Capital provides financing to established and emerging companies located in communities underserved by conventional sources of capital. Since 1992, the firm has invested more than $3.8 billion in companies from a diverse array of industry sectors and has helped support more than 66,000 jobs. Learn more at www.advantagecap.com, or via Twitter or LinkedIn.
Since 1919, FIAT® products have been making their way into hotels, schools, offices, hospitals, and homes. As a leader in commercial, institutional, and residential markets, Fiat’s decades of experience in the design, development and manufacturing of plumbing products has led to an impressive array of durable high-quality products from acrylic and terrazzo bathing and shower modules to mop basins and laundry tubs. Look to Fiat for specialty products and plumbing fixtures designed for every application.
Fiat Products is owned by GWBD Operations, based in Kansas City, MO and also owns PRIER Products, Inc. and Stern-Williams, LLC. PRIER manufactures residential, commercial, and ground hydrants, angle sill faucets, plumbing brass, drainage products and specialty valves. Stern-Williams manufactures terrazzo mop sinks and shower bases along with steel and aggregate drinking fountains, shower towers and accessories.
Advantage Capital is an investment adviser registered under the Investment Advisers Act of 1940. Registration does not imply a certain level of skill or training. The information in this release is not intended to be an advertisement concerning investment advisory services or an offer to buy or sell securities of any type. Advantage Capital is an equal opportunity lender.
The investments and portfolio companies referenced here represent only a sample of companies that have received investment capital from Advantage Capital-related entities. For a complete list of such companies, please see our website at advantagecap.com. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities highlighted herein or contained in any other information provided by Advantage Capital. Past performance is no guarantee of future results.
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Contacts
Advantage Capital
Joe Stosberg, Communications Manager
jstosberg@advantagecap.com
