Tag: Group

This strategic sale will enhance Jebsen & Jessen’s geographic expansion, strengthen its distribution capabilities and networks while securing MSM’s long term growth and future development in Mongolia.

Agricultural and Beverage Conglomerate, MSM Group today announces the sale of a majority stake to Jebsen & Jessen Group thereby securing a continuously growing future for the company and its employees.

As one of the leading conglomerates in Mongolia, MSM Group spans multiple sectors and since 1998, has been playing a pivotal role in introducing premium international brands to the Mongolian market; it remains the sole distributor and partner for more than 50 of these brands in the country today. With over 650 employees, MSM Group operates showrooms, workshops, warehousing facilities and sales outlets in the central area of the capital city Ulaanbaatar, as well as South Gobi and other areas of Mongolia.

Founders and primary shareholders Laurenz Melchers and David Reiner, along with their equity partner Mongolian Opportunities Fund, are excited with this announcement.

This acquisition brings together the technological know-how and strength of two family businesses serving complementary markets. Both groups are no stranger to each other, sharing not only historical family business connections, but also distribution agreements with MSM having served as a distributor of Jebsen & Jessen Group’s industrial products in Mongolia for over a decade.

Securing a strong future for MSM and its employees

For nearly 30 years, the founders built a future for MSM by funding its expansion with continuous re-investments into the fast-paced growth opportunities of Mongolia. They are fully aware of their responsibility towards Mongolia, the business and, especially, its employees.

As such, in preparation for this day, they ensured that an exceptional management team was set-up and given the opportunity to independently run the day-to-day management of the business with great success.

In order to guarantee that MSM continued to thrive for many decades to come, they made the difficult decision to search for a family business with shared values and long-term history but also the capital strength and international presence, to take over the reins at MSM.

It has taken some time to find the right partner and it is therefore a sad and a happy moment for the two Founders to make this announcement but they are comfortable with the notion that MSM’s future is in good hands; especially since they will remain as shareholders in MSM and will also be growing their other business interests in Ulaanbaatar, thus staying loyal to Mongolia for many years to come.

“Having known Heinrich Jessen, Chairman of Jebsen & Jessen for many years, both in a professional and personal capacity, both David and I are assured that this is the right step and the perfect group to entrust the future of our beloved MSM and its employees for the many years to come” said Laurenz Melchers Chairman of MSM Group

In addition, both MSM founders and Jebsen & Jessen Group want to welcome Mark Gabel to the new shareholding structure of MSM; Mark will remain CEO of MSM and they know he will take full advantage of all the synergies and opportunities that the Jebsen & Jessen Group can provide to continue to successfully grow MSM for the years ahead.

The transaction took effect after approval by the Mongolian authorities. LCA Solutions, a Hong Kong regulated Multi Family Office, acted as financial advisor to the Founders of MSM. Wschong & Co in Hong Kong, Mishcon de Reya in London and Melville Erdenedalai in Ulaanbaatar acted as legal advisors for the different Founders while Herbert Smith Freehills in Hong Kong acted for Mongolian Opportunities Fund.

Expanding market reach, capabilities and synergies for growth

With this announcement, Jebsen & Jessen Group takes a market leading position in the fast-growing market of Mongolia and another step in its continuous expansion beyond its established market strongholds in South East Asia.

“We are delighted to be welcoming MSM Group as part of the Jebsen & Jessen family. The acquisition is a strategic move that aligns with the goal of expanding our global footprint, and enhancing our industrial and distribution capabilities,” said Jebsen & Jessen Group CEO Per Magnusson. “MSM Group’s leading market position in Mongolia, its strong management team and workforce, and its diverse businesses will be a valuable addition to our portfolio. We will benefit from the synergies that we can now leverage across these activities.”

For MSM Group, this acquisition facilitates access to the extensive resources and expertise of Jebsen & Jessen Group, offering new avenues for growth and development. MSM Group will become the seventh business unit within Jebsen & Jessen Group. MSM Group will continue to operate under its current company name and leadership, and maintain its commercial presence with all operations and business proceeding as usual.

“MSM Group has enjoyed strong growth over several decades to become the market leading company it is today. Joining Jebsen & Jessen Group provides us with the potential to scale our operations to levels we have never achieved before. These are exciting times for our teams and the brands we represent,” said MSM Group CEO Mark Gabel.

About Jebsen & Jessen Group

Part of a global family enterprise that dates back to a trading partnership formed in Hong Kong in 1895, Jebsen & Jessen Group headquartered in Singapore is today an industrial conglomerate with a diverse network of businesses spanning manufacturing, engineering, mining and distribution activities. Core businesses include cable technology, garnet, ingredients, life sciences, packaging and other industrial technology, across more than 15 countries in five continents. Over 4,000 colleagues work as one to develop meaningful products and services for the myriad customers served.

For more information, visit www.jjsea.com.

About MSM Group

Founded in 1998, MSM Group is today with over 650 highly professional Mongolian and foreign employees a leader in the automotive, industrial and beverage distribution sectors. MSM/SGT is also a strategic business partner of Oyu Tolgoi, the world’s third largest copper and gold mine that is operated by Rio Tinto. MSM Group delivers premium quality consumer and industrial products and services to a wide network of customers and partners. In addition, MSM Group supports social projects and programmes in many areas such as health, environment, sustainability, arts and children’s education as part of the company’s corporate social responsibility.

For more information, visit www.msmgroup.mn.

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Since its establishment in 1998, MSM Group has been operating in three main areas of business: Automotive, Beverage and Industrial, with a team of our highly professional and skilled Mongolian and foreign employees. 

Our operations began with a dealership of renowned automotive brands Mercedes-Benz and Jeep. Since then, MSM Group has been devoted to contributing to the Mongolian economic and social development by steadily supplying key sectors such as construction, agriculture, mining and manufacturing, with necessary industrial supplies and equipment, their rental as well as repair and maintenance services. Also, in addition to import and sales, we expanded our operations with chemical production and manufacturing. 

We are proud to share our milestones throughout the fruitful 25 years since our establishment.

MSM Group, as part of its corporate social responsibility, in partnership with the National Research Center for Blood Transfusion (NRCBT), organized a blood donation day to support this important social responsibility initiative by donating blood.

During the event, more than 60 employees became blood donors and donated their blood, and the total amount of blood and blood products collected will reach more than 190 people in urgent need of blood transfusion.

Our corporate social responsibility efforts strive to support projects and initiatives that bring long-term and tangible contributions to the social development, children’s rights, health and education.

“MSM Group” LLC, as part of its corporate social responsibility initiative, has been supporting and collaborating with the Shambala2056 project on the “BE HUMAN” campaign. Within the scope of the collaboration since 2021, a total of 572 trees have been planted so far. Particularly, 286 trees have been planted in Erdene soum, Dornogovi province, an area with heavy desertification and soil degradation. Also, 286 trees will be planted in Uliastai on the outskirts of Ulaanbaatar.
The 286 trees donated by “MSM Group” LLC is growing on the “A” letter part of the “BE HUMAN” land-art , which is made up from planted trees and can be seen from far above. As the end of 2022, these planted trees have absorbed a total of 1,3 million kgs of carbon dioxide (CO2), produced 2,1 million kgs of oxygen, and generated 7,2 million kgs of biomass, bringing improvements to the soil and the overall environment in the area.  
Our corporate social responsibility efforts strive to support projects and initiatives that bring long-term and tangible contributions to the social development, children’s rights, health and education.

MSM Group LLC, as part of its corporate social responsibility, has donated PROXXON brand electric tools and PPE (personal protective equipment) to the Rajiv Gandhi Polytechnic College of Production and Art.

The college is the sole college in Mongolia, which provides certified education to vocational training students in the field of ‘Traditional wooden doll making’. We believe the donated tools and PPE will be a great contribution to the improvement of accessibility of professional and advanced tools to the students.

Our corporate social responsibility efforts strive to support projects and initiatives that bring long-term and tangible contributions to the social development, children’s rights, health and education.

As part of our corporate social responsibility and sustainable development goals, MSM Group has been implementing the “Zero Waste” internal campaign in which company operational waste is being recycled and employees are encouraged to sort and recycle daily waste. We sort the waste in three main categories and distribute it to respective recycling plants: regular recyclable waste (plastic bags, bottles, glass bottles, cans, paper), industrial recyclable waste (tires, battery, chemical canisters, chemical bulk bags, oil etc.), and bio waste (coffee grounds, food waste). 

As of the 1st quarter of 2023, a total of 2 tons of paper, 50 kg of plastic cans and bottles, 200 kg of plastic bags, 1,2 tons of metal barrels, 2,500 liters of oil, 20 kg of battery and other waste were recycled and supplied to recycling plants such as “Eco Orchin” LLC, “Plastic Design Ungu Nem” LLC. “Tumen Egshig” LLC, “Tsetsuuh” LLC, “HI B-Oil” LLC, “Muujig Organic” and “Logiston” LLC. Products such as paper boxes, linings for pit toilets to protect against soil pollution and road paving materials are being produced from the recycled waste.

Our corporate social responsibility efforts strive to support projects and initiatives that bring long-term and tangible contributions to the social development, children’s rights, health and education.