Corporate news
Further Investment for Caledonian Building Systems
As you are aware Caledonian has been supported since 2003 with venture capital funding from Dunedin Private Equity, based in Edinburgh. This funding has helped Caledonian continue its steady growth and maintain our position at the forefront of the off-site construction market.
However, venture funding is, by its nature, short term, and we have recently been considering options for longer term support which will enable us to continue to develop Caledonian.
I am therefore pleased to announce that we have entered into an agreement with US Company Champion Enterprises for them to acquire Caledonian and provide the support to enable us to grow the business in the long term. Dunedin will, in early April, sell their shareholding to Champion and exit the business.
Champion is a US listed company specialising in off-site construction of housing in the US and Canada. With 32 factories across North America and a turnover of £740M, they are the largest modular builder in the US, mainly building timber framed housing. They are investing in Caledonian for the wealth of knowledge and expertise we have in modular construction and are looking for us to expand further in the UK and Europe.
Therefore Champion offers Caledonian the financial strength to continue the growth of our modular business: you may be aware that we are aiming to build a fourth factory during 2006 and we will then investigate further opportunities for expansion. Champion's support provides strong backing and will give us the ability to continue the development of our markets in the UK and the rest of Europe.
There will be no changes in the Caledonian organisation or management team, who are committed to building on the achievements to date and business will continue as normal with no effect on day to day operations.
The combination of Caledonian and Champion represents a great opportunity for both companies and establishes Caledonian as a strongly backed, major player in the UK construction industry.
We look forward to a bright and exciting future.
