Modulex Modular Buildings and HBEM have launched an independently backed business, following last year’s collapse of Merit Group Services.
The former Merit Group went into administration in November, resulting in the loss of approximately 340 jobs.
The new company, Merit Industrialised Construction, brings together Modulex, HBEM and a group of former Merit directors.
The business will use selected intellectual property, design systems and manufacturing know-how acquired through the administration process, but will function with its own governance and operating model, targeting UK and international construction markets.
Modulex, backed by Red Ribbon Asset Management, sees the acquisition of Merit intellectual property as a way to expand into new markets. Red Ribbon founder Suchit Punnose said the platform will support growth both in the UK and internationally, including India and the US.
Modulex is currently investing in a new 40-acre manufacturing facility in Mumbai to produce steel modular buildings, bathroom pods and components for commercial and residential projects.
A ‘new chapter’
Co-investor HBEM, led by Brad Antin, specialises in the delivery of advanced manufacturing environments, including facilities for data centres, semiconductors and pharmaceuticals.
Commenting on the acquisition, Antin said: “It is positive that the research, development and innovation embedded within the acquired IP can now be progressed and made available to clients in the UK and overseas through a newly formed organisation.”
Tony Wells, CEO of Merit, added that the launch of the new business “represents a new chapter”.
“The business has been established with new investment partners, new governance and a refreshed operating model. This structure allows us to build on proven intellectual property while developing new capabilities for the future,” Wells added.
“The administration of the former businesses was a difficult outcome and resulted in the loss of a significant manufacturing presence in the region. Merit has been created to move forward positively, supported by strategic investment and international opportunity, with a focus on design, manufacturing and delivery excellence.”
