Mar 11 2008
Champion Enterprises, Inc., a leader in factory-built construction, announced today that it has expanded its international segment through the acquisition of United Kingdom-based ModularUK Building Systems Limited ("ModularUK"), a steel-framed modular manufacturer, for a nominal initial cash payment and the assumption of approximately $4 million of debt. In connection with the acquisition, it has entered into a lease agreement for three additional buildings near Driffield, East Yorkshire, approximately 60 miles northeast of Champion's existing U.K. operations.
ModularUK, which recorded revenues of approximately $24 million in 2007, produces and installs steel-framed modular buildings serving clients in the healthcare, education and commercial sectors throughout the United Kingdom. While ModularUK currently operates leased manufacturing facilities located in East Yorkshire, the business will be relocated to the new Driffield site upon completion of leasehold improvements, occupying one of the three new buildings. The two remaining buildings, upon completion, will provide approximately 25 percent additional manufacturing capacity for the company's current Caledonian operations. The new Driffield site is expected to be fully operational later this year.
"ModularUK brings to Champion not only strong, profitable current operations but additional management depth and much needed manufacturing capacity to continue to grow and expand our U.K. operations. In addition, entry into the modular healthcare and education construction sectors will help fuel the future growth of our international segment and the continued diversification of Champion," stated William Griffiths, chairman, president and chief executive officer of Champion Enterprises, Inc. "We are proud to have the ModularUK team join with Caledonian's management in leading our growing business abroad."