Posted August 2004
Tricycle, Inc. and Cre8tiv, Ltd., a pair of leading technology service providers for the carpet industry, announce a merger and concurrent round of equity funding led by the Southern Appalachian Fund and private investors for an undisclosed amount. The funds will be used to accelerate growth in North America by expanding the company’s services. Tricycle was advised by Miller & Martin, PLLC.
The investment follows a $500,000 round of debt funding into Tricycle, Inc. in January 2003 by Northwest Georgia Bank and Southeast Community Capital as well as significant British equity financing into Cre8tiv, Ltd. in 2001. The merger creates a global company with a focus on regional service. North American operations will remain in Chattanooga, TN, USA while European customers will be serviced from Ilkley (Leeds), West Yorkshire, UK.
“We have invested in Tricycle because of the company’s early accomplishments, position in its industry, and potential for growth and value appreciation,” said Grady Vanderhoofven, Executive Vice President of Southern Appalachian Management Company, the General Partner of the Southern Appalachian Fund. “Tricycle’s management team has demonstrated its commitment to achieving the company’s potential and our investment will allow the company to emerge as the market leader in its industry, both domestically and internationally.”
“This is a merger of proven technology with proven process, and represents an exciting opportunity to provide even deeper dedication to service and innovation. The bringing together of a global team of the brightest talent available in multiple disciplines is not only good for business, it's good for shareholders, and absolutely great for customers,” said Jamie Harrison, CEO of Tricycle.
Jonathan Bragdon, Tricycle President added, “Together, we have the best and broadest portfolio of technology and services to deliver what matters most to our customers – improvement to the bottom line, reduction in waste and accelerated transactions. SAF’s backing allows us to fulfill these objectives for our customers faster.”
Tricycle, Inc. was formed in 2002 and became the exclusive North American reseller of Cre8tiv, Ltd., the developer of SIM™ technology and owner of Apso, Ltd., a 21 year-old British CAD company. Since the venture began, the company has won the commerical interiors industry’s most prestigious awards, including two NeoCon Golds for technology and sustainability. Customer acquisitions have included Interface, Inc. and Bentley Prince Street (IFSIA), Lees Carpets and Mohawk Commercial (MHK), and Shaw Contract (BRK.A) in addition to other leading carpet manufacturers.
Tricycle was also lead presenter at the 7th Annual Tennessee Valley Venture Forum hosted by Technology 2020 and the City of Chattanooga and was named one of “Tennessee’s most dynamic technology companies” in 2003.
"We recognized early on that it is crucial for emerging companies like Tricycle to have ready access to capital to grow their businesses," said Chattanooga Mayor Bob Corker. "Through the efforts of our community, venture capital is now available in our market and serving as an important tool for outstanding companies like Tricycle to grow and expand their workforce."
In addition, Tricycle participates in Hamilton County's Center for Entrepreneurial Growth (CEG), a high tech incubator that focuses on nurturing companies with strong growth potential through the early stages of development.
According to County Mayor Claude Ramsey, Tricycle's rapid development is an excellent example of why he created the CEG. "Tricycle's development from a great idea to company with global reach has happened very rapidly," Ramsey said. "In Hamilton County, we're succeeding in creating the kind of business environment and resources to support companies like Tricycle focus on the core business of establishing themselves as a strong and profitable company."
The newly restructured, global company is led by Harrison, who will serve as Chief Executive Officer. Bragdon will continue to lead North American efforts as Tricycle’s President. Brand and marketing responsibilities will be driven by Michael Hendrix as Chief Branding Officer. Andy Shipman will become Chief Technology Officer for the entire
Tricycle™ is a technology services company focused on the creative product lifecycle of commercial carpet manufacturers. Tricycle emphasizes profitability, productivity and sustainability with proprietary prototyping technology and sustainable carpet sampling practices. The company has offices in Chattanooga, TN, USA and Ilkley (Leeds), West Yorkshire, UK. For more information call 800-808-4809 or visit www.tricycleinc.com.
About the Southern Appalachian Fund
The Southern Appalachian Fund, with offices in Oak Ridge, Tennessee and London, Kentucky is a New Markets Venture Capital Company, providing equity capital and operational assistance for early-stage and growth companies in low income areas in Kentucky, Tennessee and the Appalachian counties of Mississippi, Alabama and Georgia. For more information go to www.southappfund.com, call 865-220-2020, or e-mail info@southappfund.
The Chattanooga Area Chamber of Commerce is the leading business and economic development organization for the Chattanooga region. For over 100 years, the Chattanooga Chamber has provided community engagement and opportunities for businesses, large and small, including networking, business promotion, business discounts, and public policy advocacy, as well as leadership development and training opportunities.
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