TDR acquires UK pre-fab group

TDR Capital has completed its fifth investment with the acquisition of modular buildings supplier Elliott Group for £166m.

In its fifth investment, London-based private equity firm TDR Capital has acquired modular buildings provider Elliott Group for £166 million (€241 million; $304 million) from parent company Davis Service Group.

Elliott Group manufactures and sells pre-fabricated modular buildings in the

TDR Capital: aiming to build on prefab housing

industrial, educational, residential and healthcare sectors. The company has over 34,000 units in total and employs 1350 people in 38 locations across the UK.

In 2004, the company generated an operating profit of £17.8 million on a turnover of £146.2 million.

TDR also owns France-based Algeco, the European modular building business in which it acquired a 67 percent stake for €320 million in July last year. The firm was not available for comment this morning on whether or not TDR intended merging the two businesses.

TDR has previously acquired businesses in the same sector, without merging them – the public-to-private acquisitions in the UK restaurant sector of Pizza Express (£300 million) in 2003 and ASK Central (£230 million) in 2004.

The firm also recently completed the £1 billion acquisition of a number of closed life insurance funds from UK financial services company HHG, alongside Sun Capital Partners, an investment vehicle controlled by UK entrepreneur Hugh Osmond.

TDR is currently investing from the fund that it closed in April 2004 “substantially in excess” of its €500 million target, although the firm has declined to disclose the exact amount raised.

TDR Capital was set up by former DB Capital executives Manjit Dale and Stephen Robertson, along with Tudor Capital, an affiliate of alternative asset manager Tudor Group.