A seven-figure management buyout at a Bedwas-based refrigeration and air conditioning company has been completed.

Tom Hannaby, who is behind the buyout, joined CB Refrigeration four years ago, and was director of the company. He will now become managing director and majority shareholder.

Funding for the management buyout at the firm, which is based on Bedwas House Industrial Estate, has been provided by the Development Bank of Wales.

The exact cost of the buyout has not been revealed, but it is in excess of £1m.

Founded as a small family business in 1968, CB Refrigeration initially supplied and serviced commercial refrigeration equipment, but now specialises in the design, installation and maintenance of refrigeration and air conditioning for a number of sectors, including retail, hospitality, industrial and pharmaceutical.

Mr Hannaby, who will lead a team of 20 staff as managing director, said: “From day one of joining the business, I have worked closely with the directors to make the right investments to deliver our long-term goals.

“We’ve got a great business and we’ve remained resolute in our collective ambition to do what’s right for the business and our people. The support of the Development Bank of Wales and Mervyn Ham of Iridium has really helped us to get to where we are today, particularly as Covid-19 could have disrupted our plans.”

Jason Beament, group director at CB Refrigeration, said: “We acquired CB Refrigeration in 2016 and then appointed Tom with a remit to help us grow the business.

“He has played a key role in transforming the organisation over the last four years and worked closely with us to introduce new ideas and efficiencies that have improved performance and market share.

“With the help of our advisors, we’ve been able to develop and deliver an exit strategy that ensures absolute continuity for our staff and customers.

“Our ongoing support as directors means that we will continue to work closely with Tom and the new management team as they prepare for the next phase of growth.”

Ruby Harcombe, of the Development Bank of Wales, said: “This really is a text book case of a successful phased management buyout and we’re particularly pleased that the transaction progressed during lockdown.

“We are delighted to have provided the necessary funding and have every confidence that the business will continue to thrive as they forge ahead with great determination and resilience.

“It’s a win-win situation for everyone involved.”

Mervyn Ham of Iridium Corporate Services, provided specialist succession planning support during the buyout. He said: “These are difficult times for many businesses. Now more than ever, it is those with carefully considered and well prepared succession plans that will achieve the best managed exit strategies.”