Pacific Mercantile Bank ("the Bank"), the wholly owned subsidiary of Pacific Mercantile Bancorp announced that it has provided a $4.4 million credit facility to Powder Coat Services, LLC ("PCS"). The credit facility consists of a commercial term loan and a revolving line of credit. In addition to the financing, PCS utilizes a full suite of Pacific Mercantile Bank's depository products and treasury management services. PCS was referred to Pacific Mercantile Bank by its private equity sponsor, Meridian General LLC, which acquired the company in 2016.
Based in Anaheim, Powder Coat Services, LLC is an industrial finishing company specializing in electrophoretic deposition (EPD) and powder coating. Founded in 1981, PCS is a pioneer in OEM and job shop powder coating, an environmentally sound method of painting metal commercial parts that has become one of the most protective common finishes. With four production lines, PCS is able to coat products of every shape, size, color, and dimension for use in industries such as automotive, construction, electrical, hardware, and military among many others. PCS also offers customer-tailored value-added services including tube bending, fastener installation, light manufacturing, final assembly, complete packaging, and supply chain management.
"PCS has utilized the resources provided by Meridian General to build a dynamic industrial services enterprise and position the company to reach a new level of growth," said Ravi Rao, CEO of Meridian General and Chairman of PCS. "Pacific Mercantile Bank has provided valuable support to other companies in our portfolio and was able to quickly understand PCS' business plan and create a solution that will support our continued process innovation, investments for growth in plant capacity and expansion into new markets."
"PCS has established a strong reputation for offering high quality, customized value-added services as a key link in the supply chain of its blue-chip customers," said J. Thomas Fagan, Vice President at Pacific Mercantile Bank. "In addition to meeting PCS' financing needs, we had the opportunity to help their management team with our proprietary Horizon Analytics® methodology, which is built to help Clients better assess strengths and competitive position. We also provided assessments of how planned future investments in various areas of their operations would impact the success of their business."
"We appreciate Meridian General providing us with the opportunity to work with another of their portfolio companies," said Zach Martin, Senior Vice President at Pacific Mercantile Bank. "Meridian's investment track record for driving profitable growth positions their portfolio companies to be highly desirable clients for Pacific Mercantile Bank."