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Sale of Molecular Products Group to Arlington Capital Partners

Friday 23rd December 2016

Molecular Products Group (MPG) and Business Growth Fund plc (BGF) today announced the sale of the business to Arlington Capital Partners, a Washington DC-based private equity firm.

Headquartered in Harlow, Essex, UK, MPG is a leading manufacturer of advanced chemistry-based products serving the healthcare, defense and industrial markets. The Company primarily specialises in the manufacture and supply of chemical technologies for the treatment of breathable gases and is able to serve its global customer base out of its two primary manufacturing facilities in Harlow, Essex, UK and Boulder, Colorado, USA.

MPG was majority owned by the McKernan family whose father established the company in 1973. Since 1995 it has been run by Ian and Andrew McKernan who have continued the family stewardship into its fifth decade.

BGF’s investment in September 2014 helped the Company to move into its new facility in Harlow, invest in new plant and equipment in both the UK and USA and accelerate its global expansion. They also introduced Paul Barnard as Chairman and strengthened the management team.

With the acquisition by Arlington, Troy Rhudy, currently President MPG USA, will take over the running of the group from Ian McKernan and Andrew McKernan.

The sale comes at an exciting time for the Company with a number of new products in development and follows a review of options and sale process carried out by Paul Teuten in the London office of Duff & Phelps, the global valuation and corporate finance advisor.

“We are rightly proud of Molecular Products achievements in becoming a recognised global market leader in life critical air technology. The time is now right for the Company’s talented team, under the leadership of Troy Rhudy, to take the business forward. The backing of Arlington Capital will enable the Company to deliver on the many exciting growth opportunities ahead” said Ian McKernan.

Peter Manos, a Managing Partner at Arlington Capital, said “We are excited to be partnering with CEO Troy Rhudy and his management team at Molecular Products to expand the Company’s unique position in the development of advanced chemistry-based applications for the healthcare and defense markets, which are key verticals for Arlington. Molecular Products continues Arlington’s long track record of investing in industry leading companies with technically differentiated and proven products in the market.”

Will Gresty, investor at BGF, commented “we are delighted that our partnership with Molecular Products has come to a successful conclusion for all the shareholders. As a family-owned, UK based manufacturer, Molecular Products is just the kind of business that BGF likes to back and it has been a pleasure to support the McKernan family’s ambition to build it into the world-class business it is today.  We wish Troy and the team every success in the future.”

About Molecular Products

Molecular Products specialises in the manufacture and distribution of chemical technology for the purification of air to preserve life and protect the environment. Founded in 1924, it is a global leader in its field, offering a complete product solution for the removal of carbon dioxide, the generation of oxygen and filtration of hazardous or harmful emissions.  Molecular Products has over 130 employees with manufacturing operations in Harlow, Essex, UK and Boulder, Colorado, USA and distribution offices in Australia, China and India.

About Business Growth Fund

BGF was established in 2011 to help Britain’s growing smaller and medium sized businesses. Backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS and Standard Chartered – BGF is an independent company with up to £2.5bn with which to make long-term equity investments.

BGF’s mission is to unlock the potential of fast-growing UK businesses that need long-term capital to drive their future success.

BGF seek companies that have robust and realistic expansion plans, with the flair, business acumen and desire to reach for new heights. BGF is about more than just financial investment and returns. The firm offers a collaborative approach to financing growth, working closely with the companies in which they invest.

About Arlington Capital Partners

Arlington Capital Partners is a Washington DC-area private equity firm that has managed $2.2 billion of committed capital via four investment funds, including Arlington’s fourth and most recent $700 million fund. Arlington is focused on middle market investment opportunities in growth industries including: aerospace/defense, healthcare, government services and technology and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field.

Ian McKernan

Molecular Products Group Limited, Parkway, Harlow Business Park, Harlow, Essex, CM19 5FR, UK

E-mail : [email protected]

Peter Manos

Arlington Capital Partners, 5425 Wisconsin Ave., Chevy Chase, MD 20815, USA

E-mail : [email protected]

Will Gresty

BGF Plc, 13-15 York Buildings, London, WC2N 6JU, UK

E-mail : [email protected]