Private equity (PE) outfit Duke Street Capital has announced the acquisition of modular offsite building specialist McAvoy for an undisclosed sum.
The Northern Ireland-based contractor was sold by Blantyre Capital, another PE firm.
Founded in 1972, McAvoy designs, manufactures and rents modular buildings across the UK and Ireland in the healthcare, education, pharmaceutical and commercial sectors.
The firm operates from a 6,500 square metre factory in Lisburn (pictured) and employs more than 160 people across offices in Dublin, Birmingham, Bristol and London.
McAvoy delivers both temporary and permanent turnkey buildings, with modules typically more than 70 per cent complete on dispatch.
The sale ends a five-year period of ownership under Blantyre.
Duke Street partner Joe Thompson said McAvoy was a “well-capitalised and market-leading business” with strong sustainability credentials.
McAvoy chief executive Ron Clarke said Duke Street’s investment came “at a critical time in the modular building industry” and would support its continued growth.
No changes to McAvoy’s management team have been announced.
In its most recent accounts, McAvoy returned to profitability with a pre-tax profit of £217,600 for the year ending 31 May 2024 compared to a £712,700 loss the year before.
During the same period, group turnover increased from £59.4m to £75.5 million.
According to the firm’s latest accounts, its improved performance was driven by long-term rental demand, particularly from schools affected by the RAAC crisis.
In the 2023/24 financial year, the firm received £36.3 million from the Department for Education (DfE), positioning it as the DfE’s 11th largest contractor.
This year, McAvoy has also been appointed to the Scottish Procurement Alliance’s £80m modular framework, the London Construction Programme’s £3bn education framework and an NHS new-build modular framework.
According to its website, Duke Street invests in “mature, mid-market Western European businesses” with an enterprise value of €50m to €350m (£43.5m to £305m).
It acquired a full stake in Irish M&E specialist Suir Engineering in November 2022 from EDF Energy Services, a joint venture between French energy group EDF and Dalkia.
Source: Duke Street Capital announcement / Companies House
