What's Happening?
Duke Street Capital, a private equity firm, has acquired McAvoy Group, a modular offsite building specialist based in Northern Ireland. The acquisition was made from Blantyre Capital, another private equity firm, for an undisclosed amount. McAvoy Group, established in 1972, is known for designing, manufacturing, and renting modular buildings across the UK and Ireland, serving sectors such as healthcare, education, pharmaceuticals, and commercial industries. The company operates from a 6,500 square meter factory in Lisburn and employs over 160 people across various offices in Dublin, Birmingham, Bristol, and London. The acquisition comes at a time when McAvoy has shown a return to profitability, with a pre-tax profit of £217,600 for the year ending May 2024, compared to a loss the previous year. The company has also secured significant contracts, including a £36.3 million deal with the Department for Education and appointments to several major modular frameworks.
Why It's Important?
The acquisition of McAvoy Group by Duke Street Capital is significant for the modular building industry, particularly in the UK and Ireland. This move underscores the growing demand for modular construction solutions, which offer faster and more sustainable building options. McAvoy's recent financial turnaround and its involvement in major frameworks highlight the increasing reliance on modular buildings, especially in the education sector, which has been affected by the RAAC crisis. The investment by Duke Street Capital is expected to further bolster McAvoy's growth and innovation in the modular building space, potentially leading to more efficient and cost-effective construction solutions. This acquisition also reflects a broader trend of private equity interest in the construction sector, driven by the need for sustainable and rapid building solutions.
What's Next?
With Duke Street Capital's backing, McAvoy Group is poised for further expansion and innovation in the modular building industry. The investment is expected to enhance McAvoy's capabilities and market reach, potentially leading to new contracts and partnerships. Stakeholders in the construction and education sectors will likely monitor McAvoy's progress closely, as the demand for modular solutions continues to rise. Additionally, the acquisition may prompt other private equity firms to explore similar opportunities in the modular construction market, further driving competition and innovation.
