A management buy-in (MBI) team led by ex-Lotus General Manager, Ansar Ali,and backed by Corven Ventures, the private equity arm of the consulting andcorporate finance firm Corven Group, has bought Caterham Cars for anundisclosed sum.
Caterham is the pre-eminent sports car manufacturer in its sector producinglightweight, affordable road and racecars with supercar performance. Thecompany’s heritage stems from the legendary Lotus Seven sports car acquiredfrom Lotus Cars in 1973. Over the last 30 years Caterham, headed by itsfounder Graham Nearn and subsequently by his son, Simon, has successfullydeveloped the Caterham Seven. Today, the company sells more than 500 cars ayear in over 15 countries, generating a turnover in excess of £15 million.
In October 2004 Caterham launched its exciting new Caterham Seven CSR model,which draws its power from two bespoke high performance engine variants fromCosworth Racing. The CSR not only establishes a new benchmark in handlingand performance, but also renews an alliance with racing legend Cosworth,who return to the road car market after a ten-year absence.
The MBI team will bring sector experience to compliment the existingCaterham management. Ansar Ali as Managing Director is joined by GideonWigger, another ex Lotus manager, as Operations Director, and by DavidObertelli as Finance Director. James Basden (founding Director of Corven)and Mark Edwards (Director of Corven Ventures), both of whom have extensiveautomotive experience, will join the board as Non-Executive Chairman andNon-Executive Director respectively. Outgoing Caterham Cars ManagingDirector, Simon Nearn, will continue to assist the new management team on aconsultancy basis. The combined management will seek to underpin thefundamentals of the business and drive the Caterham brand forward to meetcustomer demands whilst enhancing profitability.
Ansar Ali commented, “This is a unique opportunity and one that places on mea responsibility to ensure that we remain true custodians of the Caterhamlegend and brand. I am looking forward to the challenge of harnessing theinherent capabilities of the business – its employees, suppliers andpartners - in order to continue to deliver sector leading products,outstanding customer value and financial returns to our shareholders andpartners.”
Simon Nearn commented, “For a number of years we have been seeking inwardinvestment to support the ever spiralling cost of new product development. Iam delighted to announce the conclusion of this process, which sees thearrival of a highly experienced new management team, backed by a level offinancial commitment that will ultimately enable the Caterham Brand torealise its full potential.
“Caterham Cars has until now been a strictly family business and although ithas grown significantly in recent years, a shared sense of purpose and aninfectious enthusiasm for the product has driven us as a team. Ansar and hiscolleagues not only recognise this dedication, but also share our enthusiasmfor the Seven. They are ideally placed to begin the next chapter in theCaterham story.”
Chairman and founder Graham Nearn added, “It is clearly an emotional timefor many of those who have contributed to the success of the business overthe last four decades, and it is both reassuring and fitting that the newowners of the business should come from Lotus, where of course the Sevenstory began. That this should happen at a time when our historic links withCosworth are being renewed seems particularly appropriate”.
