January 4, 2021

New York, NY – Kinderhook Industries, LLC (“Kinderhook”) announced today the acquisition of VESTA Housing Solutions LLC (“VESTA” or the “Company”) from management and investor Balmoral Funds, L.P. (“Balmoral”). Financial terms of the transaction were not disclosed.

Founded in 2014 and headquartered in Southfield, MI, VESTA is a leading provider of temporary and permanent modular space solutions across a diverse base of end markets and applications. The Company operates two divisions – (i) modular space leasing whereby it leases units from its owned fleet of over 3,200 floors to customers across a range of end markets and (ii) modular construction services whereby it facilitates design, manufacturing, logistics, and installation of modular buildings. VESTA’s core end markets include education, industrial, construction, government, municipalities and retail sectors. In addition to its Southfield, MI headquarters, VESTA operates strategically-placed branches in some of the nation’s fastest growing markets – Atlanta, Houston, and Miami.

“Partnering with Kinderhook will allow us to continue our ambitious growth strategy over the coming years.” said Dan McMurtrie, Co-Founder and Chief Executive Officer of VESTA. “We believe firmly that VESTA will continue its rise to become the preeminent modular building provider in North America, evidenced by our significant retained ownership in the enterprise. We have been blessed with terrific investment partners throughout our journey and look forward to continuing to execute our growth vision.”

“We are excited to partner with VESTA’s best-in-class management team as we look to build a market-leading provider of modular space solutions.” said Rob Michalik, Managing Director at Kinderhook. “We believe that VESTA’s complimentary business divisions, deep customer relationships, and proven track record of success position the business to capitalize on numerous positive industry tailwinds.”

As part of the transaction, Kinderhook will be adding several of its Operating Partners to the Board of Directors including Scott Thompson, Robin Richards, and Boyd Lipham. Charles Paquin, former President and CEO of ModSpace, will also join the Board of Directors. Each of these board members brings a wealth of industry experience and will serve as a valuable resource for both Kinderhook and Management.

Kirkland & Ellis LLP served as legal counsel to Kinderhook. Financing for the transaction was provided by a syndicate led by Flagstar Bank.

Greenberg Traurig served as legal counsel to Balmoral and VESTA.

For additional information about this transaction, please contact: 
Robert Michalik
Managing Director
(212) 201-6789
[email protected]
 
Sam Keenan
Managing Director
(212) 201-6795
[email protected]
 
Derrek Ross
Senior Associate
(646) 775-9977
[email protected]
 
Kevin Gayhardt
Vice President
212-201-9979
[email protected]