Halesowen-based Vacuum Furnace Engineering (VFE) has secured a substantial funding package from banking group Santander and private investment firm SEA Equity.
Prominent West Midlands businessman, Roy Kishor, has taken the role of Chairman and will lead the management team in growing the GBP10 million turnover firm in the longer term, seeing a big opportunity to expand its contract servicing and repair business, develop the next generation of vacuum furnaces and set up a new apprenticeship scheme in addition to its current business.
The Santander Corporate & Commercial Banking, Cornwall Street, Birmingham, team provided a growth capital loan, senior debt and a revolving credit facility through Relationship Director Steve Mitchell, Relationship Manager Hannah Clarke, Credit Partner Robert Lapper and Growth Capital Director James Cooksey.
The growth capital facility is part of Santander’s Breakthrough programme, which aims to support fast growth businesses and help them fulfil their potential. As well as funding, Breakthrough offers companies access to trade missions, business master classes, networking events and support in areas such as finance and marketing.
Established in 1985, VFE is one of the UK’s leading specialists in the design, supply and repair of vacuum furnaces. The company supplies vacuum furnaces to a blue chip international client base, including Rolls Royce, Siemens and Boeing. Vacuum furnaces are used to heat treat metals and ceramics at high temperatures without exposure to air.
Roy Kishor, Chairman, Vacuum Furnace Engineering, says: “The investments we have received from Santander and SEA Equity enable us to kick-start our next phase of growth and expansion. The business is currently undergoing a period of significant development and we are delighted that Santander has taken the time and effort to understand our business, our potential and support our ambitious future plans.”
Darren Hart, Head of Growth Capital at Santander UK, says: “Vacuum Furnace Engineering is a market leader in its field and a perfect example of the best of British engineering and what entrepreneurial vision, technical expertise and business acumen can achieve. We’re proud to able to support this established and successful business and the industrial tradition of Black Country industry.”
Elliott Nicholson, Partner, SEA Equity says: “VFE delivers first class service to its customers and we are delighted to be backing the business on its next stage of growth. Management has ambitious plans to expand VFE’s operations both in the UK and internationally and this aligns perfectly with SEA Equity’s experience and expertise.”
Santander was supported by the Birmingham offices of accountants BDO and law firm Browne Jacobson LLP which provided financial due diligence and legal services, while Armstrong Transaction Services provided commercial due diligence.
