Arizona Tribune - Modulex Acquires Majority Stake in Merit

LONDON, UK / ACCESS Newswire / January 26, 2026 / Modulex Modular Buildings Plc is pleased to announce that it has completed the acquisition of the majority stake in Merit Industrialised Construction Limited ("Merit"), a newly incorporated business that specialises in the delivery of leading engineering and advanced modular manufacturing. The transaction brings together Merit's deep expertise in high specification modular construction with the industrial scale and global reach of Modulex creating a powerful and fully integrated international modular construction group.

The newly incorporated business has acquired selected core assets and intellectual property from the previous Merit Group Services business.

A strategic acquisition that elevates global modular construction

Merit has established itself as one of the most technically advanced modular and offsite construction businesses in the sector. Its proprietary technology stack combines product-based, virtual design and construction, building information modelling, advanced parametric costing, precision engineering and a comprehensive kit of parts platform. This enables rapid engineering responses and highly accurate models from the earliest stage of project development significantly reducing risk and uncertainty for clients.

A standout advantage is Merit's ability to generate fast reliable and fully costed designs within extremely short time frames. Because design, engineering, costing and manufacturing are all integrated through a single digital platform Merit can provide cost certainty and technical assurance from day one eliminating cost and time inefficiencies that traditionally plague early-stage construction planning.

Merit built one of the world's most extensive specialist design libraries for complex building types. This includes validated designs for hospitals, biotechnology facilities, clean rooms, pharmaceutical production labs, medical device manufacturing facilities, sterile environments and other mission critical buildings requiring absolute precision and regulatory compliance. This proven design library makes project mobilisation significantly faster and reduces reliance on bespoke engineering.

Industrial scale meets advanced technology. Global synergy between Modulex and Merit

Modulex has recently commissioned one of the world's largest steel modular buildings factories in India. This MegaFactory® was designed to support large volume modular production for healthcare, education, commercial buildings and residential clients worldwide.

With the integration of Merit's technology stack the MegaFactory® will become a high-performance global manufacturing centre capable of producing advanced modules at scale with exceptional quality and consistency.

Applying Merit's product-based engineering principles across Modulex's manufacturing network will create a single harmonised platform with minimal design inefficiency delivering repeatability, cost efficiency and predictable outcomes across all markets. This unified approach positions the combined group at the forefront of the global shift from traditional construction methods to industrialised building production.

A major strategic advantage lies in the ability to manufacture core kit of parts in India and export them to the United Kingdom and other geographies for final assembly. This cross-factory collaboration increases margins, reduces cost pressures and allows the group to leverage purchasing power, supply chain integration and shared product development.

Healthcare, Data Centres and Affordable Housing: Priority Sectors in the United Kingdom

The combined Modulex - Merit platform will focus on three priority infrastructure sectors in the United Kingdom: Healthcare, Data centres - supporting artificial intelligence and digital infrastructure, and Affordable Housing.

In Healthcare, the group will target the delivery of modern hospital infrastructure across the United Kingdom. There is a recognised shortage of hospital capacity driven by ageing estates, population growth and rising demand for healthcare services. The group has identified a pipeline of up to four hospital projects that can be delivered using the integrated modular platform. By applying Merit's specialist hospital design library and Modulex's industrial scale manufacturing capability, the group is positioned to deliver high quality hospitals at speed with improved cost certainty, reduced disruption and enhanced environmental performance.

In parallel, the platform is well suited to the rapid delivery of advanced Data Centre infrastructure required to support the growth of artificial intelligence, cloud computing and digital services. The combination of precision engineered modules, high tolerance manufacturing and factory-based delivery enables faster deployment of mission critical data facilities with predictable performance and reduced construction risk.

The production capacity of the Modulex MegaFactory® also enables the group to support large scale Affordable Housing programmes in the United Kingdom. By manufacturing at industrial scale in India using Merit's standardised product architecture and assembling them in the United Kingdom, Modulex can significantly reduce cost and delivery timelines while maintaining consistently high build quality. This approach has the potential to make a measurable contribution to the supply of high quality, energy efficient affordable homes at speed, addressing one of the most pressing social challenges in the United Kingdom.

Environmental leadership and the Triple P Bottom Line

Modulex's manufacturing methodology is carbon net zero certified and is rooted in the company's Triple P Bottom Line philosophy which places Planet, People and Profit at the centre of its business model. This principle guides every aspect of the group's operations from design and engineering through to supply chain management and community impact.

The acquisition enhances Modulex's ability to deliver buildings with significantly reduced carbon footprints, better energy performance and radically improved construction efficiency.

Leadership commentary

James Withey, Group Managing Director of Modulex said: This is a landmark moment for our company. Merit has built one of the most advanced modular technology platforms in the world. Integrating it into the scale and capability of our MegaFactory® in India creates a global manufacturing engine that can deliver hospitals, science centres and affordable housing with unmatched speed quality and certainty. This acquisition positions Modulex at the forefront of the modular construction revolution.

Tony Wells, Managing Director of Merit added: We are delighted to join a group with the scale and ambition of Modulex. Our proprietary technologies and deep specialist design capabilities applied across a multinational factory network will allow clients to benefit from world class modular solutions delivered faster and more efficiently than ever before.

About Modulex Modular Buildings Plc

Modulex Modular Buildings Plc designs and delivers precision engineered modular buildings for global markets. Using advanced digital design artificial intelligence supported production and a fully integrated carbon conscious supply chain Modulex provides high quality scalable building solutions for healthcare, housing, defence and education.

Building on the success of its MegaFactory® in India Modulex is actively planning the establishment of additional MegaFactories in the United States, South Korea, Indonesia ,Vietnam and Saudi Arabia. These facilities will mirror the company's high volume manufacturing model and will support local delivery of advanced modular buildings at scale across multiple continents.

Modulex is also preparing for a near term listing on Nasdaq as a Constructech business with the intention of accelerating its global expansion, strengthening its balance sheet and positioning the group as one of the world's leading industrialised construction technology companies.

Modulex is part of the Red Ribbon Group, a Mainstream Impact Investment company, that creates profitable and scalable ventures delivering measurable social and environmental impact while contributing to long term sustainable development.

About Merit Industrial Construction Limited

Merit Industrial Construction Limited is a United Kingdom based advanced modular construction and engineering company specialising in high specification facilities. The business was formed following the acquisition of selected core assets and intellectual property from Merit Group Services Limited, Merit Holdings Limited and Merit Health Limited. Merit is recognised for its proprietary technology platform, rapid design and estimation capability and extensive specialist design library across hospitals, life sciences, clean rooms pharmaceutical manufacturing and other mission critical environments. The company delivers projects with speed precision and certainty using a fully integrated design engineering and manufacturing model.

www.modulexglobal.com
www.merit.co.uk
[email protected]
London, United Kingdom

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SOURCE: Modulex Modular Buildings Plc

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