Grant and Tom Sega’s passion for building a better mousetrap, or in this case, a better camping saw, helped position them as owners of a manufacturing business, Spring Creek Manufacturing in Mountain Iron, Minnesota.
“Growing up in northern Minnesota, we’ve always been outdoors enthusiasts,” explained Grant Sega. “We had an idea for building the best camping saw, so we bought a bunch of saws and examined all the features we liked and didn’t like for each of them. We developed a prototype and met with Chuck Newberg of Spring Creek. We loved their products, and we thought our innovation would be a great addition to their product line. After working with Chuck for four or five months and getting to know the business, Chuck asked if we wanted to buy the company.”
Tom knew Noah and Steve Wilcox as customers of his other business, Duluth Pack. Based on that ongoing relationship, Tom and son Grant approached Noah Wilcox about financing the acquisition.
“We were committed to working with an Iron Range bank,” said Tom. “Noah helped us arrange the financing, which positioned us for a turnaround and eventually gave us the runway for growth.”
Tom and Grant acquired the business in July 2017. Where Spring Creek had been largely an outfitting business with manufacturing, the Sega’s focused on creating and selling superior outdoor equipment.
“We truly appreciated the quality craftsmanship Spring Creek was known for, and our goal was to develop innovative solutions that would enhance our customers’ experiences in the paddle sports industry,” explained Grant.
Spring Creek’s product line includes anodized aluminum vehicle racks that are adjustable for height and width, ideal for hauling a wide array of canoes, kayaks and other equipment. After thinking about it further, the Sega’s saw opportunities in expanding the product line to include heavy-duty “headache racks,” high-grade anodized aluminum truck racks with loading bars that adjust to various widths to assist in loading items on the truck racks.
“The industrial market has really grown along with the paddle sports market,” said Grant. “When we first started out, our sales network consisted of local outfitters and outdoor retail outlets, people we knew on a first-name basis. Since then, we’ve built a distribution network of third-party channels like Amazon, a dealer network around the United States, Japan and Europe, and a couple of manufacturers’ representative groups.”
Grant expanded the company’s reach with an internet and robust social media presence. The company now employs three fulltime and one part-time employee, supplemented with other part-time employees during the summer months.
“One of most compelling aspects of our relationship with Grand Rapids State Bank is the seamless relationship we’ve developed with the staff,” said Tom. “If we have a question, we pick up the cell phone and connect with either of them. This special touch has helped create personal relationships, and they’re backed up by a level of customer service we have not seen at other banks.”
“Everything hasn’t always been rosy with the business,” added Tom. “During COVID, we weren’t deemed an essential business, and the bank walked us through the PPP (Payroll Protection Program) loan process. When we needed more capital, they were there for us. Their business banking platform has really made it easy for us to transact business. They are an outstanding partner.”