Molecular Products Group ("MPG) provides leading chemical technology for the purification of air to preserve life and protect the environment.
The company’s chemical based technology is applied in a number of specialised and demanding end-markets within the healthcare, military and industrial sectors with customers including the MoD. MPG was also commissioned by NASA to design and build an emergency oxygen system for the International Space Station.
MPG has a turnover of £20 million and operates from manufacturing facilities in Harlow, Essex, and a second manufacturing facility in Colorado, USA.
As a second-generation family business, MPG saw several growth opportunities but were concerned about potentially losing management control to an outside investor.
Our team advised management and family shareholders on exploring funding options to capitalise on the company's existing growth plans and product development initiatives.
We were engaged to approach a number of possible private equity funders in order to raise £4 million which would be used to fund new product development as well as improving operational efficiencies within the Company.
After a highly competitive process, which saw several parties tabling offers, the Business Growth Fund provided £4 million growth capital into the business for a minority stake.
In what remains a challenging funding and operating environment, we received offers from all pre-vetted private equity houses that were approached.
Our corporate finance team maintained very competitive offers with the preferred private equity houses despite various challenges and project managed the process through to a successful completion.
Furthermore, as part of the capital injection, the family shareholders of MPG were also able to extract from the business a non-core property (previously used as the company’s manufacturing facility) which will now be developed for commercial purposes.
We really appreciated the strategic advice Grant Thornton provided the family on taking on outside investment and positioning the business to receive external investment. The team ran a very focussed process and helped us select a suitable funding partner. Their knowledge of debt and private equity funding has helped us realise our growth ambitions. We look forward to working with them again.
Ian McKernan Group CEO & Shareholder, Molecular Products Limited
