– June, 2006 – F.N.B. Capital Corporation, LLC, the Pittsburgh-based merchant banking subsidiary of F.N.B. Corporation (NYSE – FNB), has announced the closing of an important investment transaction. In partnership with First National Bank of Pennsylvania and a group of private equity investors, the newest subsidiary of Hermitage, PA-based F.N.B. Corporation (NYSE: FNB) will fund the purchase of AlturnaMATS, Inc. in Titusville, PA by Michael Gierlach, an employee who has worked at the company for six years, and his family. The funding allows the company that employs 35 to remain in Titusville.
F.N.B. Capital Corporation and a group of private investors invested the majority of the capital, while First National Bank provided a secured loan and bridge financing. Bill Joseph, Senior Vice President, Commercial Lending and Stan Kukla, Vice President, Business Banking Unit in Franklin are the First National Bank commercial lending officers involved in the transaction.
“This investment contains all of the elements F.N.B. Capital Corporation was designed to address,” noted Stephen Gurgovits, Jr., President and Chief Executive Officer of F.N.B. Capital Corporation. “We worked with Bill and Stan to provide the flexible solution needed for this transaction. We addressed the financing needs of a small business that may not have been attractive to larger investment firms. And we were instrumental in retaining jobs by enabling a manufacturer to keep its operations in the local community.”
Other prospective buyers of AlturnaMATS wanted to relocate the Titusville operation out of state. The one prospective buyer who would keep the plant in Titusville was Michael Gierlach. When he approached Joseph and Kukla at First National Bank for the financing he needed, they contacted F.N.B. Capital Corporation because the amount needed could not be totally secured by real estate and equipment, and did not meet standard bank lending parameters. Because F.N.B. Capital Corporation offers mezzanine and equity investments, it was able to supplement the Bank’s lending limitations. In addition, F.N.B. Capital Corporation was able to attract additional equity investors to partner on the transaction.
“Had Michael approached us a year ago, before F.N.B. Capital Corporation was formed, we might have had to pass on this opportunity,” commented Kukla. “Now, working as a team, we were able to retain a good client, as well as keep an important community employer in the area.”
“Having a merchant banking company as part of the mix of financial services available to customers of First National Bank is a real asset to both the Bank and to its customers,” said Gary Roberts, President and Chief Executive Officer of First National Bank. “Our commercial lending officers are now able to assist a greater number of commercial lending customers with customized solutions.”
AlturnaMATS, Inc., founded in 1995, manufactures heavy gauge plastic sheeting that construction companies use to prevent excessive damage to lawns and landscape during renovation and excavation projects. The sheeting has a patented tread design and is a more cost effective material than alternatives, such as plywood and steel sheeting.
The product is used for home construction and renovation projects, as well as in areas such as cemeteries, golf courses, universities, etc. In addition, the company manufactures and markets various other tread designs and related products such as a walking tread design (VersaMats) that is less aggressive than the standard design, outrigger pads created by cutting and binding pieces of a full mat, linkages (Turn-A-Links) for connecting multiple sheets, and custom tools (Handi-Hooks) which can be used to maneuver the mats. More information can be obtained on the company’s website at www.alturnamats.com
Michael Gierlach is the new President and Chief Executive Officer. After working as a laborer on the shop floor, Gierlach was promoted to Executive Assistant where he assumed responsibility for production scheduling, ordering raw materials, billing, and management of accounts receivable and accounts payable. He also assisted in the expansion of the dealer network, enhancement of the marketing activities, and assumed the cash management responsibilities.
Gierlach’s parents, Paul and Vennie Gierlach, will assist in the day-to-day operations of AlturnaMATS as Vice Presidents. Paul is the founder/owner of a rock crushing business and assisted in the installation of the original production equipment for AlturnaMATS.
About F.N.B. Capital Corporation, LLC
F.N.B. Capital Corporation, LLC is headquartered in Ross Township, PA. Established in October, 2005, as a subsidiary of F.N.B. Corporation, it specializes in providing subordinated debt, private equity, and other types of financial capital to small and medium sized commercial enterprises, focusing on recapitalizations, buyouts, generational transitions, mergers and acquisitions, and other growth capital needs.
About F.N.B. Corporation:
F.N.B. Corporation, headquartered in Hermitage, PA has total assets of $5.6 billion. F.N.B. is a leading provider of banking, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania and Ohio, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, First National Capital Corporation, LLC, and Regency Finance Company. It also operates consumer finance offices in Tennessee and loan production offices in Florida.
Mergent Inc., a leading provider of business and financial information on publicly traded companies, has recognized F.N.B. as a Dividend Achiever. This annual recognition is based on the Corporation's outstanding record of increased dividend performance. The Corporation has consistently increased dividend payments for 33 consecutive years.
The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol FNB. Investor information can be obtained on F.N.B.'s website at http://www.fnbcorporation.com.