Specialist manufacturer secures investment for future growth
Foresight Group, a leading independent infrastructure and private equity investment manager, has invested £4.0 million into specialist manufacturer M.R Machine Knives (MRMK), providing equity release and growth capital to the business.
The investment and Foresight’s involvement will support founder and managing director Michael Bailey in the continuing growth of the business, leveraging the outstanding reputation that MRMK has built up since its inception.
Sheffield-based MRMK supplies a diverse range of machine knives – a critical component – for the food production and packaging industries. The Company trades globally in 50 separate countries, with some 80% of sales exported worldwide, and has had sustained year on year growth since it was formed in 2008.
Foresight’s investment will drive further growth across the business, with plans to diversify the customer base by targeting new sectors and geographies as well as investing in further in-house manufacturing capabilities to expand the product range. As part of the transaction Foresight has introduced Dave Roberts as Chairman. Roberts was a founder and CEO across a number of food packaging manufacturers, so has strong knowledge of the company’s products and market dynamics.
Commenting on the investment, Bailey said: “The Company has grown year-on-year since it was formed 12 years ago, but in order to take it to the next level we needed to bring on board a new partner to help the business realise its full potential.”
He added that the business had been looking for an investor that would not only “offer financial backing but also help the company enter new markets whilst continuing to achieve operational excellence”, with Foresight identified as the “perfect partner”.
He concluded: “I look forward to the future and I am confident that the business will flourish with Foresight’s support and backing.”
Rob Jones, senior investment manager at Foresight, added: “Michael, supported by the wider team at MRMK, has built a very strong business from the ground up to become one of the most reputable companies within its sector. The company’s reputation for quality and service delivery really stood out throughout the process and the sustained growth over recent years has been impressive. The sector has demonstrated robust trading during the pandemic and the Company is well positioned to capitalise on positive market dynamics by further expanding its manufacturing capabilities, supported by Foresight’s investment.”
Foresight was supported by BHP and WhiteCap on financial and commercial due diligence and a legal team from Freeths led by Lisa Wallis. MRMK were advised by Hawsons, led by Pete Wilmer and Jack Ware with CMS advising the vendors on legal matters.
