March 6, 2012 – London, KY and Oak Ridge, TN — Meritus Ventures, LP (Meritus Ventures) announced today an investment in Superior Fabrication, LLC (Superior Fabrication) of Haysi, Virginia. Participating in the transaction and providing management services to Superior Fabrication is Providence Capital Partners One, LP (Providence Capital Partners) of Westbury, New York. The transaction closed on March 2, 2012.
Superior Fabrication manufactures a range of parts and components for the coal mining industry, including conveyor and ventilation systems. Founded by an industry veteran and located in rural southwest Virginia, the company focuses on industrial supply distributors located in southern and central Appalachia. The investment capital will be used to increase production capacity, scale operations, and increase marketing efforts.
“Superior Fabrication is a well-run company that is positioned for growth,” said Grady Vanderhoofven, Fund Manager of Meritus Ventures. “The company has strong financials, long-standing relationships with many leading distributors, and an excellent reputation for quality and reliability. This investment will enable Superior Fabrication to build upon its strong foundation and grow at an accelerated rate. We look forward to working with Providence Capital Partners and the team at Superior Fabrication to build an increasingly successful company, creating jobs and wealth in rural Appalachia.”
“We recognize the realistic potential for Superior Fabrication to double, and quite possibly, triple its production and earnings over the next 5 to 7 years,” said Timothy Mangeruga, a partner at Providence Capital and newly appointed Chief Executive Officer of Superior Fabrication. “We feel the team in place has the ability and vision to meet this goal, and we are excited by the opportunity to work with Meritus, the people at Superior, and the community in Dickenson County, Virginia to achieve that potential.”
About Meritus Ventures (www.meritusventures.com)
Meritus Ventures, L.P. is currently the only Rural Business Investment Company (RBIC) in the United States. The $36.5M venture capital fund invests to realize attractive returns for the fund’s investors while creating wealth and jobs in rural areas of central and southern Appalachia and Arkansas. In addition to providing equity investment, the fund may provide operational assistance to its portfolio companies.
About Providence Capital Partners (www.providencegroup.us)
Providence Capital is a newly formed private equity group which focuses on acquiring small to mid-sized companies for the purposes of achieving superior returns for its partners. Providence Capital also provides private equity related advisory services to its corporate clients.
Contact: Melissa Muendel, firstname.lastname@example.org, 865-220-1715