Category: News

MSM Group, as part of its corporate social responsibility, has donated hand tools to Magic Mongolia Khentii Center’s children’s STEM club.

Magic Mongolia Khentii Center is a children’s protection and development center in Khentii aimag and is one of the four rural branches of the Magic Mongolia Center. The students of the children’s STEM club build flying models, ship models, auto models and lock mechanisms for developing the children’s interest and passion for engineering and technology. We believe the donated hand tools will be a great contribution to the improvement of the accessibility and participation of the students in the aforementioned STEM activities.

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.

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.

Diversified Industrial, Automotive, Chemical, 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.

Employee health and safety are essential to creating a happy and comfortable working environment.

MSM Group is pleased to offer health insurance coverage of 50,000,000MNT for the physical and psychological well-being of our employees. Additionally, employees have the opportunity to insure their families, access free psychological counseling, and participate in weekly sports activities.

Ready to start your career journey with us? Submit your resume to our open positions by CLICKING HERE.

Employee satisfaction is our greatest value and pride at MSM Group LLC. Check out the picture below to hear from five of our employees about what makes them happy working here.

Ready to start your career journey with us? Submit your resume to our open positions by CLICKING HERE.

MSM Group successfully co-organized the Wheelchair Heroes Progress Cup 2024 in cooperation with JCI Progress and the Mongolian Wheelchair Fencing Association at the MSM Automotive showroom.

Since 2019, the wheelchair fencing project “Wheelchair Heroes” has been implemented by the JCI Progress in cooperation with the Mongolian Wheelchair Fencing Association. The project, which initially started with three athletes, has seen a significant growth over the years, now having more than 60 active athletes and continues to grow.

As part of the corporate social responsibility, MSM Group cooperates and supports many projects, including initiatives for ensuring and supporting the equal participation of persons with disabilities in society.

We wish all the athletes and winners of the competition great success in their future sports aspirations.

MSM Group will co-organize the Wheelchair Heroes Progress Cup 2024 at the MSM Automotive showroom.

Since 2019, the wheelchair fencing project “Wheelchair Heroes” has been implemented by the JCI Progress in cooperation with the Mongolian Wheelchair Fencing Association. The project, which initially started with three athletes, has seen a significant growth over the years, now having more than 60 active athletes and continues to grow.

Let’s enjoy the charismatic performances of all the participating athletes and spend a day full of fun and memories.