Engineering business opens R&D centre after MBO
An engineering business in Warwickshire which is under new ownership has opened a research and development centre and is set to change its name.
Managing director Robert Jones led the management buy-out of Leamington-based CeraCon UK, which safeguarded the future of the 20 staff at the foam sealing company.
After a nine-month process, the deal was completed with the support and guidance of the Coventry and Warwickshire Local Enterprise Partnership (CWLEP) Growth Hub.
Jones said: “Covid-19 hit our German partners hard. However, after our initial April 2020 closure in the first lockdown, we returned in May and were straight back to two shifts. Since then, I have been very fortunate to work with the Growth Hub, as well as various legal and business advisors, to reach the MBO conclusion.
“Our German parent company’s options were to close and consolidate, or sell to an unknown party, in order to keep their business afloat. This option worked for everyone.
“We applied for a £400,000 Coronavirus Business Interruption Loan Scheme (CBILS) through Lloyds Bank, which helped to fund 80% of the deal. Then with the support of Lloyds Bank commercial financing, we were able to make up the difference.
“At the beginning of 2020, we expanded into a second facility, which will become our technical and visitor Centre. We are specifically targeting applications within the Battery Electric Vehicle market with our new R&D facility.”
The facility was supported by grant funding from the Coventry and Warwickshire Innovation Programme (£4,455) and from the Coventry and Warwickshire Green Business Programme (£20,000) which are part funded by the European Regional Development Fund (ERDF) and delivered by Coventry City Council and delivery partners; Coventry University Enterprises and Warwickshire County Council.
Jones said: “This helped us to invest in and install the largest of our foam seal production cells. It will allow our technology to be used on the sealing of automotive electric battery enclosures, which tend to be the size of the car floor.
“With our continued expansion, we will start to diversify and develop our own brand. By the end of June this year we will be changing our name to Robafoam, Robotically Applied Foam Seal Specialists.”
Jim Clark, account manager at the CWLEP Growth Hub, said: “It has been a pleasure to help Robert with the management buy-out which can be daunting at any time, but particularly in the middle of a pandemic.
“I have no doubt that CeraCon UK – or Robafoam as it will be known from the summer – will continue to diversify into different markets because they have a winning combination of technology and expertise.”
