A Midland-based brakes maker, which supplies motor racing and motor sports teams across the world, high performance road cars and specialist vehicles has refinanced to drive it forward.

Alcon Components is experiencing rapid growth despite the difficult economic backdrop. And it believes the “Lewis Hamilton effect” can only be good 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 £9 million.
Ms Moore, Midlands corporate finance partner of accountants Horwath Clark Whitehill, advised on the deal along with Richard Cliff of Black Country law firm George Green.

Ms Moore 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 that growth. We have worked closely with Pat Moore over the last two years to ensure our funding supports our growth plans.”

Mr Meek, regional director of asset-based lender Venture Structured Finance, said: “Venture has backed an experienced management team who are continuing to invest in the business for the long term.

“We are delighted to have put this working capital headroom together for them – and this shows how we are still lending and doing deals.”

Richard Cliff, senior partner of George Green, said: “This is a successful British technology company competing in an exciting market.

“It is the latest stage in their development and we were delighted to help them with it.”
Alcon had diversified the business and expanded into the aftermarket sector, particularly in the Far East.

Mr Fergusson said that 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.”
Conversely, he sees a boost for the UK industry from Lewis Hamilton becoming Formula One champion.

Mr Fergusson, who is also chairman of the Motorsport Industry Association, said: “Certainly it is very good for UK motor sport plc.

“If it draws people into the sport then it will also draw people into the industry.”

Established in 1984 by engineer and sports car racer John Moore, Alcon employs 90 people in total – most at its headquarters and manufacturing facility in Tamworth and others in the US and France.

In addition, it has a global network of distributors.

Around three quarters of its output goes for export.

Key markets are the US, Germany, France, Japan and Australia and it is also selling into China, Korea, Malaysia and Singapore.

The Alcon management team is supported by non-executive chairman, Roy Kishor.