The bank-backed £2.5 billion Business Growth Fund (BGF) has led a £4 million investment into an Essex-based chemical technology business.

Molecular Products Group (MPG), the business receiving the funds, develops and manufactures medical devices, gas filters and oxygen generators. Its chemical-based technology provides products for the healthcare, military and industrial sectors and clients such as the Ministry of Defence.

BGF’s capital will be put to work securing a further share of existing markets as well as pushing out into new territories including India and Japan. MPG will also be looking to develop further innovations in its product lines such as high performance activated carbons and portable lightweight oxygen generators.

Ian McKernan, group CEO and part of the family that owns MPG, comments, ‘The investment will enable the further growth of the business through market expansion and the introduction of leading-edge filters and systems.

‘The addition of experienced top calibre personnel to the senior management team will add to the strength of the business.’

The new additions McKernan refers to come in the shape of Paul Bernard, who spent 14 years at engineered products business ITW and six years as group MD of Rocol. Bernard, who will serve as non-executive chairman at MPG, was brought in through BGF’s Talent Network.

More on recent BGF investments:

• Abbey Pharma inks BGF deal
• Packaging manufacturer turns to venture capital
• GYMBOX becomes second fitness investment for BGF

BGF has now invested £7 million into the chemical technology sector, with its other deal in the space involving fluid engineering consultancy BHR Group.

Mark Nunny, senior investment manager at BGF, adds, ‘Molecular Products has established strong defensible niche positions in otherwise competitive end market thorough developing a differentiated portfolio of products as well as its pipeline of opportunities it has created over its recent history.

‘It has established itself as a major international player in its chosen markets. With the momentum of fresh investment behind it, the business is ready to develop its product offering and expand into new markets – all of which make for an exciting growth story which we are very pleased to be a part of.’

BGF, which began investing in 2011, has now added 20 manufacturing businesses to its portfolio.