£11m investment helps build Bristol construction equipment group into international brand

December 11, 2019
By

Another growth phase is on the cards at Bristol-based Molson Group, the UK’s largest independent distributor of capital equipment to the construction and waste management sectors, after it secured a further £11m investment.

In a deal put together in Bristol by city-based advisers, Molson received the funding from the Bristol office of BGF, the UK and Ireland’s most active investor in growing businesses. 

It will use the investment to develop its existing sites – including redeveloping its Avonmouth headquarters into a centre of excellence for construction equipment in the UK and a national parts centre – as well as strengthening its brands and expanding its international and waste management offerings.

BGF invested £6.3m into Molson in 2018 to accelerate growth and to explore potential acquisitions. Since then the business has acquired Scottish equipment dealer Finlay Group, opened a depot in Inverness and been appointed Terex Trucks dealer for the UK. The group’s turnover is now more than £200m.

The latest deal was put together Kay Drury, Chris Parsons, Tim Spooner, Tom Coombes and Ewa Bakowska from the Bristol office of accountants KPMG and Ken Lewins, Adam McKenna, Laura Autiero and Alan Hughes from South West law firm Foot Anstey, who acted for BGF.

John Gill and Nicole Spurling from national law firm TLT’s Bristol head office and Paul Morris and Stephen Martin of regional accountancy group Bishop Fleming acted for Molson.

Molson managing director Robin Powell said: “We are immensely proud of the business we’ve built over the past two decades and our partnership with BGF has helped us accelerate that growth and hit some significant milestones over the last 12 months.

“We have ambitious plans for the future, and we’re pleased to have BGF’s long-term funding and support to help us get there.”

BGF investor Paul Oldham, who sits on Molson’s board, added: “Molson has generated impressive growth across the UK and internationally in recent years, becoming an industry leader with a strong reputation and track record.

“Robin, [co-founder] Jonathan and the team at Molson remain committed to excellent customer service through their extensive global network and strong supplier relationships and we’re delighted to be supporting them through this exciting next stage of growth.”

The TLT team also included trainee solicitor Jessie Cockhill, while tax advice was provided by legal director Mark Braude, specialist share incentives advice by partner Ben Watson and associate Lucy Hedges, and banking input by legal director Richard Clark.

TLT also advised Molson in 2018 on BGF’s previous £6.3m investment.

TLT partner Jon Gill said: “Molson is a great example of a business founded in the South West that has grown to become the leading national operator in its sector. We were delighted to support the Molson team on this significant transaction.

“This investment demonstrates the continued strength and activity of the private equity market, and the confidence of equity investors in this consolidating sector.”

Founded in Yatton in 1996 by Jonathan Wilson and Robin Powell, Molson 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.

The firm has grown organically and through acquisition and now operates from depots in Warrington, London, Kent, Stratford Upon Avon and Doune in Scotland as well as its head office at Avonmouth.

It works with leading original equipment manufacturing brands and is the largest European dealer for Korean and Japanese excavators, including Hyundai, Kobelco and Ammann brands.

The £11m follow-on investment from BGF will be used to redevelop Molson’s Avonmouth site into a centre of excellence for construction equipment in the UK and a national parts centre. It will also be used to expand the group’s international reach, support new brands including Terex dump trucks, and continue to develop Molson Green, its distribution arm for waste management and recycling equipment.

 

 

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