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 SelecTech, Inc.
A CDVCA Central Fund Portfolio Company
Thomas Ricciardelli, President/CEO
Avon, Massachusetts
In August 2003, the CDVCA Central Fund invested $250,000 in SelecTech, Inc., structured as a five-year subordinated loan paying 10 percent annual interest and ten-year warrants as an equity kicker, in SelecTech, Inc. The Central Fund joined CDVC co-investors, SJF Ventures, Fleet Development Ventures, and the Boston Community Venture Fund.
SelecTech is located in Taunton, Massachusetts, a formerly thriving industrial area that has suffered as textile manufacturing has moved offshore. The company manufactures products made from 100 percent post-industrial and post-consumer plastics. Its newest product, Freestyle, is a durable flooring material ideal for commercial spaces. Freestyle, named because it is a free-lay product that requires no subfloor preparation, special adhesives, or professional installation, is also moisture resistant and does not expand or contract with changes in heat and humidity--all significant commercial flooring considerations. SelecTech already has large contracts with a number of major customers, and with the introduction of this new product line, CDVCA expects SelecTech to experience tremendous growth in the next few years.
In addition to its potential to generate terrific financial returns, SelecTech has already begun generating strong social returns. The company has created 15 manufacturing jobs and anticipates creating 30 to 40 more in the next four years. All of the jobs are located in Taunton with wages starting at $9 to $9.50 an hour for production jobs and $18 to $22 an hour for supervisors. The company provides health care coverage, a stock option plan, and a 401(k) plan. Additionally, SelecTech provides on-the-job training and opportunities for employees to move up to more independent and supervisory roles as they master the necessary skills.
CDVCA Central Fund Profile
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