Kkatat Secures $14.6 Million to Boost Manufacturing
Deal News | May 01, 2025 | CEI Ventures Inc
CEI Capital Management LLC has announced a $14.6 million investment through the New Markets Tax Credit (NMTC) program to Arcata, California-based Kkatat, Inc., a manufacturer of durable specialty outdoor gear. The investment is aimed at scaling up Kkatat's manufacturing capacity to meet increasing demand. Established in 1971, the company has evolved to produce high-performance materials, expanding its customer base beyond recreational water sports to include defense applications. With this new funding, Kkatat plans to purchase new equipment, refurbish existing machinery, and expand its workforce. The investment will help create over 40 new full-time positions, in addition to preserving 106 existing jobs, offering competitive wages and benefits. This initiative is particularly impactful in Humboldt County, which has faced a decline in manufacturing jobs. The project aligns with CEI Capital's mission to bolster manufacturing growth and job creation in rural areas. U.S. Bancorp Impact Finance is providing the NMTC equity, while Hope Community Capital acted as an investment consultant.
Sectors
- Manufacturing
- Financial Services
- Outdoor Recreation
Geography
- United States – The investment and expansion project involve several states, including the company's headquarters in California and CEI Capital Management's operations in Maine.
- California – Kkatat's manufacturing facility is located in Arcata, California, where the investment is set to take place to expand production and create jobs.
- Maine – CEI Capital Management LLC, the entity providing the investment, is based in Brunswick, Maine.
Industry
- Manufacturing – The article focuses on Kkatat, a manufacturing company that produces durable specialty outdoor gear. The investment aims to increase its manufacturing capacity.
- Financial Services – CEI Capital Management LLC and U.S. Bancorp Impact Finance are involved in financial transactions, using the New Markets Tax Credit program to support investment in rural communities.
- Outdoor Recreation – Kkatat is a manufacturer of outdoor recreation gear, originally catering to water sport enthusiasts, and has expanded its product offerings.
Financials
- $14.6 million – Investment amount from CEI Capital Management LLC through the NMTC program to Kkatat, Inc.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kkatat, Inc. | Target company | Company | A manufacturer of durable specialty outdoor gear, based in Arcata, California. |
| CEI Capital Management LLC | Investor | Company | Provider of flexible capital to businesses in rural communities, facilitating investments through programs like the NMTC. |
| U.S. Bancorp Impact Finance | NMTC Equity Provider | Company | Provided the New Markets Tax Credit equity for the investment in Kkatat. |
| Hope Community Capital | Investment Consultant | Company | Served as investment consultant to CEI Capital Management LLC for the investment in Kkatat. |
| Mark Loughmiller | CEO of Kkatat | Person | CEO of Kkatat, Inc., overseeing the company's expansion and investment processes. |
| Traci Vaine | CEO of CEI Capital | Person | CEO at CEI Capital Management LLC, committed to supporting rural manufacturing growth and job creation. |