ChemTech company’s £4m funding for Japan and India push
Cambridge UK law firm Mills & Reeve has advised chemical technology company Molecular Products Group Limited on a £4 million investment from the Business Growth Fund (BGF).
Molecular Products Group, based in Harlow, provides leading chemical technology for the purification of air for the medical, military, gas processing, diving and safety industries.
The group’s products are designed to preserve life and protect the environment and include oxygen systems for submarines and miners, medical devices for anaesthesia and filters to remove toxic contamination from air.
The transaction involved an initial re-registration of the family-owned company from an unlisted plc to a private limited company, revised banking facilities for the group, the demerger of one of the group companies, the subsequent investment by BGF and the appointment of a new non executive chairman. The funding will help Molecular Products expand into Japan and India.
BGF is an independent investment company set up in 2010 to support Britain’s growing smaller and medium sized businesses with long-term equity investments and is backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS and Standard Chartered.
The fund aims to provide more than just investment monies by working in partnership with its portfolio companies to support their growth, providing access to its network of contacts and extending the benefit of its expertise and guidance on operational and strategic matters.
Ian McKernan, group CEO of Molecular Products Group said: “The thoroughly professional service and advice from Mills & Reeve was essential to a successful completion of this deal.
“The investment will enable the further growth of the business through market expansion and the introduction of leading-edge air filters and systems.”
The transaction marks the second investment by BGF on which Mills & Reeve has advised an investee company.
The multi-disciplinary team was led by corporate finance partner Zickie Lim and comprised corporate, banking, employment and tax elements.
Lim said: “We’re delighted to have assisted this Essex-based business with its growth plans. Securing this investment from a top-tier fund like BGF is a testament to the high quality of its technology and management team. We look forward to the next step in the company’s exciting future.”