Founded in the English West Midlands around Birmingham in 1775 as a partnership between the English manufacturer Matthew Boulton and the Scottish engineer James Watt, the firm had a major role in the Industrial Revolution and grew to be a major producer of steam engines in the 19th century.

The partnership was formed in 1775 to exploit Watt's patent for a steam engine with a separate condenser.

In 1795, they began to make steam engines themselves at their Soho Foundry in Smethwick, near Birmingham, England.

William Murdoch was made a partner of the firm in 1810, where he remained until his retirement 20 years later at the age of 76.

A woman banker was unusual but she became a close confidante, holidaying with Boulton, and she lent them enormous sums to fund their endeavours.