Lisburn-based modular construction firm McAvoy is under new ownership for the second time in five years.
European mid-market investor Duke Street has agreed to buy the company from Blantyre Capital. The value of the deal has not been disclosed.
Based in London, Duke Street has a record of leveraged buyouts and growth capital investments across Europe.
It has previously been involved with the Wagamama restaurant chain, The Original Factory Shop and Dublin-based Payzone.
Headed by London financier Mubashir Mukadam, Blantyre originally acquired the controlling interest in the offsite modular building specialist from the McAvoy family in 2020.
It followed a period of significant losses recorded by the business, which was founded in Coalisland by Seamus McAvoy in 1972.
The Blantyre deal triggered significant restructuring of the company, with its flagship factory in Co Tyrone put up for sale in the summer of 2020.
Conor McAvoy and sister Orla McAvoy-Corr left the business in 2021 to set up their own modular start-up Mac Zero, which continues to operate from their native Coalisland.
Five years on from the Blantyre deal, McAvoy remains a smaller operation with 160 employees based at its 70,000 sq ft factory in Lisburn, along with its sides in Dublin, Birmingham, Bristol, and London.
Announcing the deal with Duke Street, Mr Mukadam’s firm said McAvoy it had experienced “substantial growth and profitability improvements” in the past five years, which Blantyre said was reflective of increased demand in the UK modular rental and sales market for premium, cost-effective, and sustainable buildings that are flexible and easy to deploy.
“Particular growth has come from McAvoy’s rental division, which removes the need for customers to make substantial capital investments and provides them with ongoing maintenance and support.”
Duke Street partner Joe Thompson said the new owners plan to increase the size and quality of McAvoy’s rental fleet.
“McAvoy is a sustainable, well-capitalised and market-leading business that has a strong reputation for building premium modular solutions,” he said.
“In the last few years, the exceptional management team, led by CEO Ron Clarke, has successfully taken to market a new and differentiated modular product, SmartSpace, that exceeds building regulation requirements.
“Duke Street’s acquisition of McAvoy complements our long-held investment focus in essential social infrastructure services that provide the backbone to the economy.”
Ron Clarke, who was appointed chief executive of McAvoy in 2021, said: “Securing the backing and support of Duke Street, one of Europe’s most well-respected investors, underscores the strength of our proposition.
“They join at a critical time in the modular building industry, when the need for high-quality solutions has never been higher.
“Our company is uniquely positioned for further growth with a model that combines operational excellence, sophisticated design and deep sector expertise.”
Johann Scheid, investment director at Blantyre, said: “Over the past five years, McAvoy has undergone a transformational period, successfully launching SmartSpace and expanding its modular rental fleet while delivering a broad range of new permanent modular buildings across education, healthcare, and other key sectors.
“We are confident that McAvoy has found an excellent new home in Duke Street for its next chapter of growth. We wish the company, its management, staff, and new shareholders every success in the future.”
