BGF invests £6.3m into construction firm Molson
Molson Construction Equipment, the UK’s largest distributor of capital equipment, has received a £6.3m investment from BGF to support its growth strategy. Headquartered in Bristol, Molson will use the investment to build a new national parts centre and additional depots across the UK.
Founded in 1996 by Jonathan Wilson and Robin Powell, the business provides sales and aftersales services for heavy construction equipment – such as excavators, material handlers, crushers and loaders – to the construction, quarrying and waste management industries.
Molson has grown organically and through acquisition and now operates from depots in Bristol, Warrington, London, Kent, Stratford Upon Avon and Doune in Scotland. Working with leading OEM brands, Molson is the largest European dealer for Korean and Japanese excavators, including Hyundai, Kobelco and Ammann brands.
The company has also established Molson Green a full line distributor in waste management and recycling equipment offering all the equipment required for the handling and processing applications. Employing more than 200 people and with annual revenue in excess of £155m, Molson’s growth has been accelerated in recent years through acquisitions in the North of England and Scotland.
In addition to investment in infrastructure, Molson will work with BGF to explore further acquisitions to continue expanding its national footprint. Earlier this month, Molson acquired Finlay Plant Limited and its subsidiaries, securing the distribution rights for the complete range of Terex Finlay machinery for England, Wales and the Channel Islands.
BGF introduced the business to Bill Caplan who has been appointed as non-executive Chair. Bill is currently Chairman of Weldex International and CSH Surrey, following a career with Aggreko and UPS.
Robin Powell, managing director of Molson, said: “In recent years we have been focused on expanding our presence across the UK to provide national sales and after sales services to our customers. We believe it is critical that distributors gain scale and offer a national service to meet the demands of today’s customers. Customers are driving supply chain reductions and are focused on a national service level commitment. This investment will provide the opportunity to continue to add scale to our infrastructure and offering
“We have got to know the BGF team well and are pleased to be partnering with them. This investment will enable us to implement our plans at pace, with the support of BGF and its wider network.”
BGF, which this year became the first and only investor to have been honoured for Innovation in the Queen’s Awards for Enterprise, has made more than 20 investments in infrastructure, construction and waste management companies across the UK.
The investment in Molson was led by BGF’s Bristol team, including Ned Dorbin, James Skade and Edwin Davies.
BGF’s Ned Dorbin said: “Molson differentiates by being a national operator for a full range of heavy equipment brands, aftermarket parts and the ability to service increasingly complex machines.
“The company’s growth has been achieved through a strong and committed management team led by Robin and Jonathan, and a focus on developing longstanding relationships with UK customers and international OEM brands. We’re delighted to be supporting the company’s future growth as a minority partner.”
The advisers involved in the transaction were:
For BGF: Foot Anstey (Ken Lewins and Adam McKenna) and KPMG (Bhupinder Purewal)
For Molson: TLT (John Wood)
Business funding news
BGF welcomes successful exit of Brindley Healthcare
BGF has welcomed the successful acquisition of a 50% shareholding in Brindley Healthcare by French multinational Orpea, a leading European…
BGF to become cornerstone investor in Calnex Solutions’ IPO
BGF has today announced that it is investing in Calnex Solutions plc, an established provider of test and measurement solutions…