Brookfield, Onex to Battle for $5.4 Billion Modulaire Group

Canadian investment firms Brookfield Asset Management Inc. and Onex Corp. are competing to acquire Modulaire Group, the European designer of modular work spaces being sold by buyout firm TDR Capital, people familiar with the matter said.

Modulaire could be valued at as much as 4.5 billion euros ($5.4 billion) in a deal, one of the people said, asking not to be identified discussing confidential information. This would rank it among the biggest private equity-backed deals in Europe this year, according to data compiled by Bloomberg.

Final bids for the business are due in the coming days, the people said. Deliberations are ongoing, and sale talks could still fall apart or more bidders emerge. Representatives for Brookfield and TDR declined to comment, while a spokesperson for Onex didn’t immediately respond to a request for comment.

Modulaire has been weighing strategic and financing options, including a potential initial public offering, the company said in February after Bloomberg News reported on the plans. Goldman Sachs Group Inc. and Morgan Stanley are advising TDR, people familiar with the matter said at the time.

Modulaire designs modular buildings that can be rented for work and living, as well as portable storage units, across Europe and Asia. TDR acquired the company in 2004 and has since grown it through a string of bolt-on transactions.

The company reported a 27% increase in revenue, including acquisitions, to 320 million euros in the first quarter. Earnings before interest, taxes, depreciation and amortization rose 44% during the period to 97 million euros, including acquisitions.

Any deal would add to $160 billion worth private equity deals involving European companies this year, Bloomberg data show. That’s almost double the amount at this point in 2020, with transactions being driven by cheap financing and record amounts of unspent investor capital.

©2021 Bloomberg L.P.

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