MML Infrastructure co-invests into Premier Modular with Cabot Square Capital

Today (09.08.23) it was announced that MML Capital Partners has invested in Premier Modular alongside the incumbent Cabot Square Capital, for an undisclosed sum, positioning Premier to accelerate its growth and give best-in-class service to its customer base.

Established in the 1950s, Premier Modular is now the UK’s largest provider of prestigious and adaptable, rental and permanent, buildings solutions. It was the first non-financial company in Europe to gain ESG accreditation and is set to be carbon zero by 2035. 

This leading position has translated into consistent and record year-on-year growth. Premier’s rental fleet has grown circa 50% in the last four years. 

MML’s new investment will now further fuel Premier Modular’s ambitions to make world-class facilities more widely available in its domestic and European markets.

Premier Modular now delivers space to meet the specific needs of customers across the UK and northern Europe in the public and private sectors including: healthcare, life science, education, defence, justice, welfare buildings, data centres, offices, retail and many other commercial applications. 

Investor, Cabot Square Capital acquired Premier Modular in 2021 and has seen a robust return on its investment, driven by turnover growth from both public and private sectors. 

“Premier Modular is already a well-run company, as seen in the great performance in recent years,” says Andrew Honan, managing partner (infrastructure) at MML. “But it’s Premier Modular’s long-term growth that we are really excited about. Fundamentally, we are seeing a big societal change in how we build our infrastructure in the UK and globally – a focus on being closer to the user’s specific needs and being able to rapidly respond to change. In that context, Premier is at the vanguard of enabling this change in sustainable and affordable ways.”

Keith Maddin, partner, Cabot Square Capital said: “Premier is a highly successful business and has built a first-class track record of providing sustainable infrastructure solutions. Working with the Premier Modular team for two years now, it’s their culture of delivering excellence in tight timeframes which keeps them competitive. That’s playing its part in the company’s expansion both at home and in Europe with the launch of Premier Modular BV. We look forward to continuing to be involved in the next stage of their growth alongside management and MML Capital Partners.”

Modular construction is seen as the future of building, because it solves several challenges the traditional building industry is facing regarding sustainability, skills shortages, safety and building quality. The flexibility of modular construction is even more important for clients whose needs are constantly changing and need temporary space rather than the permanence of traditional construction. 

“There has been ample demonstration over the last 30 years that manufacturing a building using lean techniques, with precision, in a factory and then transporting it to site, makes for a higher quality building. That also translates to more sustainable buildings because they’re designed and built using a more efficient, faster and safer process compared with how traditional building sites operate. We now understand the true benefits of modular manufacture and rental within the circular economy, demonstrating that offsite manufacture is a more sustainable construction methodology,” says David Harris, Premier Modular Group’s CEO.

Few companies using modern methods of construction equal Premier Modular’s capability to operate at scale and pace which increase year on year. Even fewer companies combine Premier’s balance sheet strength, its technical expertise, and high-quality rental fleet with highly customised units providing exceptional internal working and living environments.

“Our state-of-the-art factories - which allow us to respond to each customer’s particular needs - sustain our new business pipeline. However, without doubt, it’s our people who make this business what it is,” says David Harris. “One of the reasons why we’re able to continue our strong growth is because we anticipated the skilled trades market tightening so we invested in our apprenticeship and training programmes. Many people prefer to invest in their skills with the long-term prospect of working close-to-home rather than away on building sites. 

“MML’s investment means we now continue to grow our best-in-class fleet, expand the range of funding structures we offer our clients, and accelerate our expansion into Europe following client demand,” says David Harris. “The combination of financial firepower and infrastructure expertise will be invaluable as we continue to drive Premier forward.”