Cabot Square Capital acquires majority stake in Premier Modular
Cabot Square Capital has acquired a majority shareholding in Premier Modular, one of the UK’s leading offsite construction specialists.
This fast growth segment of the construction industry allows the delivery of temporary and permanent buildings with speed, quality, cost, environmental and social benefits compared to traditional methods.
Premier Modular provided 1,700 sqm of modular buildings for the Nightingale Hospital Exeter in just four weeks and is currently working on the rapid construction of Covid-19 testing centres across the UK to support the Government’s response to the coronavirus pandemic as well as new housing for homeless families in urgent need of accommodation.
The business has a long track record of providing modular buildings for many of the UK’s biggest construction projects such as the Olympics and The Shard.
The investment will support the strategic growth of Premier’s modular hire business and its permanent offsite division.
Independently owned for 25 years, London-based Cabot Square is a specialist provider of investment capital to European companies with a particular focus in the financial services, property and infrastructure sectors. Its portfolio includes NetZero Buildings – a fast-growing offsite manufacturer of energy-efficient buildings for the public sector, and Public Sector Plc – a specialist asset manager which partners with local government and housing providers.
Established in 1956 and headquartered in East Yorkshire, Premier Modular is one of the most financially robust businesses in the dynamic offsite sector. It has achieved strong growth year-on-year and recently announced EBITDA in excess of £10m for the year ending June 2020. It provides temporary and permanent offsite building solutions across a diverse range of sectors including education, healthcare, infrastructure, construction and residential.
High profile schemes delivered by Premier include a GBP50 million project to provide office and welfare buildings at Hinkley Point. It has just 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.
Keith Maddin, Partner at Cabot Square, says: “Premier is a leader in offsite manufacturing and modern methods of construction that are revolutionising the construction industry.”
“We are seeing significant growth in this segment, 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 has a growing and best in class hire fleet offering. We are excited to partner with its outstanding management team and support the business in the next phase of its growth, including sector and geographical expansion.”
David Harris, Managing Director of Premier Modular, says: “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.”
The shareholders of Premier were advised by Stephens (M&A), Eversheds Sutherland (legal), KPMG (FDD) and CIL (CDD). Cabot Square was advised by Herbert Smith Freehills (legal) and EY (DD and transaction structuring).
*Delivered 1,700 sq m of buildings and repurposed retail unit to create a 116-bed hospital. A project that, typically, would have taken six months.