SOMERSET, Ky. — Advantage Capital, a venture capital firm, small business lender, and impact investor announced 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 in financing that exists for many businesses in low-income areas and, in turn, sparks business expansion and new jobs, community revitalization and economic development.
“New Markets Development Program has made a 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.”
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