UK moulded foam products manufacturer Moulded Foams is focusing on further expansion after securing investment from BGF.
Moulded Foams produces a range of 98 per cent air products which protect food, goods and insulate buildings. With properties including temperature resistance, shock absorption, acoustics and light weight load bearing, the foams supplied by the business help preserve energy and protect the longevity of goods for both export and domestic markets.
The company operates from bases at Cumbernauld near Glasgow, Peterhead in Aberdeenshire, Blackwood in South Wales, and Scunthorpe in Lincolnshire.
Managing director John Thornberry led a management buyout of the original Cumbernauld business in 2006 when turnover was GBP2m. Since then it has seen rapid growth, delivering close to GBP20m in 2018. The business was also listed among the London Stock Exchange’s ‘1,000 Companies to Inspire Britain’ in 2013.
Thornberry says: “We have grown the business through innovation – we work closely with our customers to develop products that meet their needs. Having factories close to our customers’ sites allows us to maintain a high level of customer service whilst ensuring costs are managed. So far, we’ve expanded our operations through a mixture of organic growth and targeted acquisitions.”
“With BGF’s investment and broad network, we hope to continue Moulded Foams growth trajectory.”
Paddy Graham, Head of Central Scotland and NI for BGF, adds: “Moulded Foams has grown extremely well over the last ten years, with a clear focus on innovation and sustainability. Not only is it a success story in its own right, it’s also a business that reflects and underpins the success of British exporting – more than 40 per cent of the foams it produces are used by other businesses to sell their wares overseas.”
“The company has been a key part of the Scottish salmon industry’s growth, which saw exports to leap to a record GBP600 million last year. It is also committed to improving the industry’s environmental credentials by offering collection services to customers and using recycled packaging in its construction products.
“BGF originally met John back in early 2017 and it has been great getting to know him and the wider management since then. The team’s understanding of the market and commitment to driving the business is second to none, and we look forward to supporting the business in its next phase of growth.”
Euan Baxter, an investor at BGF in Edinburgh, will join the board of Moulded Foams as part of the funding deal.
BGF provides long-term patient capital to businesses with revenues typically between GBP5 million and GBP100 million in exchange for a minority, non-controlling stake. BGF invests exclusively in small and mid-sized firms headquartered in the UK and Ireland and is now the most active growth investor in the world.
BGF investments in Scotland during 2018 included GBP6.75m in Walker Precision Engineering, which makes high-precision components for the defence and space sectors, to support its business expansion in the UK and Europe. It also completed its first investment in the Scottish Highlands with Parklands Group, the Moray-based independent care home business, to support its GBP10.5 million development plans in the Highlands.
