Distribution giant, SIG, has agreed terms to sell SIG Building Systems, the modular offsite construction business of SIG, to Urban Splash, the residential housing developer specialising in UK regeneration projects, for a nominal £1.
The divestment is part of the ongoing Group strategy set out by the new management team last year. In 2016 SIG Building Systems reported sales of £9.2m and made a loss before tax of £5.7m. In addition to the sale of SIG Building Systems, on 2 February 2018, the Group sold GRM, a small manufacturer of phenolic pipe insulation serving UK industrial and HVAC markets, to a subsidiary of Kingspan Group plc for an undisclosed sum.
Urban Splash’s acquisition includes SIG’s modular factory in the East Midlands, all the IP and patents of its modular housing system and around 70 staff.
Urban Splash Chairman Tom Bloxham MBE said: “Urban Splash is committed to expanding its offsite construction capacity and this purchase is a way to vertically integrate our business and give us control of the production of our Houses. It is a testament to our commitment to, and investment in, modular housing.
“SIG has been a great company to work with, but as the factory gradually filled up with Urban Splash product, it became clear to all that its natural home was with Urban Splash. We will continue to work with SIG’s excellent supply chain and welcome our great new colleagues from SIG into the Urban Splash team.
“We are committed to delivering these homes, because we know that the accelerated use of modular will help give this country more, much-needed homes and will help meet Government aspirations and targets.”
Having established itself as a leader in regeneration, Urban Splash has been developing its modular portfolio for the past 10 years. The company’s first foray using offsite technology was at its Moho development in Manchester’s Castlefield, since its initial development of the House concept in 2012 however – it has turned its attentions to the rollout of its customisable Town House.
The first Town House scheme was completed in New Islington in Manchester in 2016, with two further sites underway in Manchester and North Shields; a fourth site in Birmingham has also received planning permission.