Private equity takes over Premier Modular

Premier Modular, a manufacturer of temporary and permanent modular buildings for hire or sale, plans to use the money that Cabot Square is putting in to grow the business 50% within three years.

The purchase price has not been disclosed.

Premier Modular, formerly Waco UK, was previously subsidiary of South African group Waco International.

Cabot Square is a London private equity outfit that also owns another modular building maker, Net Zero Buildings, which it acquired in 2015.

Established in 1956 and headquartered in East Yorkshire, Premier Modular posted revenues of £66m for the year to 30^th June 2020 (2019: £53m) and made a pre-tax profit of £7.0m (2019: £5.7m).

Premier’s recent workload includes a £50m project to provide office and welfare buildings at Hinkley Point C. Currently under way is a multi-million-pound contract for Covid-19 testing sites across the UK. It has also recently been awarded a £7m contract for a 62-bed ward building at St Peter’s Hospital in Chertsey, and a number of apartment schemes are now on site following its expansion into the residential sector last year.

Premier Modular managing director David Harris said, “This new investment brings even greater stability and continuity to our business which will benefit our colleagues, customers, supply chain and strategic partners. We are looking forward to working with Cabot Square and a highly successful and productive business partnership.

“We have a clear vision and strategy for the next phase in our growth and have ambitious plans to increase turnover to £100m within three years, providing a healthy return for our shareholders.”

Keith Maddin, a partner at Cabot Square, said: “MMC and offsite manufacturing are revolutionising the construction industry. We are seeing significant growth as more public and private sector clients develop a deeper understanding of the speed, quality, cost, environmental and social benefits of moving construction into a controlled factory setting. There has also been a surge in interest in offsite following the Covid-19 pandemic as more construction clients and contractors recognise how the approach can reduce risk and disruption on site.

“Premier is a high-performing, profitable business, which manufactures high quality building solutions and continues to expand its hire fleet – already one of the newest in the UK. We are excited to partner with its outstanding management team and support the business on the next phase of its growth, including sector and geographical expansion.”

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