A Midland brakes maker, which supplies motor racing and motor sports teams across the world, has refinanced to drive it forward.
Alcon Components is experiencing rapid growth despite the difficult economic backdrop, and said it believed the “Lewis Hamilton effect” had been good news for the sector.
The company – originally part of Birmingham-based Concentric – was acquired by its management in 1999 with the help of venture capitalist 3i.
In 2007 the team took full control, purchasing the 3i stake, advised by Pat Moore of Horwath Corporate Finance. The new financial package was put together by Cliff Meek, at the Birmingham office of Venture Finance. It is aimed at financing the firm’s growth – turnover in the year to September was up by over 15 per cent at £9million.
Pat Moore, Midlands corporate finance partner of accountants Horwath Clark Whitehill, advised on the deal along with Richard Cliff from Black Country law firm George Green.
She said: “Now Alcon has the resource to speed even further ahead as a company. It is a remarkable firm in a very demanding sector.
“Motor sport depends on teamwork and it was the same for the management and professionals involved in this transaction. We worked hard as a team to get to the finishing line.
“The credit crunch may have put the brakes on the wider corporate finance world but this shows there are still good things happening in the Midlands.”
Alistair Fergusson, managing director of Alcon, said: “This company is strong and in rude health. The deal gives us significantly more headroom and a bigger pool of money to further develop the business.
“In the last couple of years Alcon has grown faster than any other time in its history and continues to do so. The need has been funding to support growth. We have worked closely with Pat Moore over the last two years to ensure our funding supports our growth plans.”
He added so far the firm had seen no specific impact from the credit crunch though there were challenges – for example, there was on-going talk of cost cutting by the major manufacturers involved in Formula One.
He acknowledged: “Expenditure has become vast and some cost containment will be required.”