Modulex Modular Buildings Plc (“Modulex”) and HBEM, together with a group of former Merit Group Services directors have announced the formation of a new, independently capitalised business, Merit Industrialised Construction (“Merit”), following an asset acquisition process conducted by the administrators of Merit Group Services.
Merit has been established as a new operating company and will utilise selected intellectual property, design systems and manufacturing know-how acquired from the administrators to service UK and international design and construction markets. The business will operate under a new corporate structure, governance framework and operating model.
Modulex is a global modular construction company backed by Red Ribbon Asset Management, a London-based investment firm. Red Ribbon founded Modulex to combine growth and expertise in industrialised construction with developing markets, including India, while enabling the deployment of modular construction technology into developed markets such as the United States.
HBEM, led by Brad Antin, specialises in the delivery of advanced manufacturing environments, including facilities for data centres, semiconductors and pharmaceuticals. The relationship between members of the Merit leadership team and the Antin family spans several decades and underpins the strategic alignment between the businesses.
The leadership team at Merit brings experience in the development of proprietary construction products, digital design platforms, manufacturing systems and integrated delivery methodologies across sectors including semiconductors, life sciences, data centres, battery technology and healthcare. These capabilities will be applied within the new business under revised commercial, operational and delivery arrangements.
Suchit Punnose, founder of Red Ribbon Asset Management and Eco Hotels, commented: “We have been talking to the Merit team for some time with regard to working together. The Merit platform provides Modulex with the IP to grow into new markets nationally. We are also aligned that the Merit IP will support new international markets including India and the US.”
Modulex is currently investing in a new 40-acre ‘mega factory’ manufacturing facility in Mumbai, designed to produce fully fitted steel modular buildings, bathroom pods and doors and windows. This facility will support the delivery of commercial and residential projects in India and selected international markets.
Joining the board of Merit is James Withey, Group Managing Director of Modulex Group. James was previously Managing Director at Algeco, one of Europe’s leading modular providers. James commented: “Clients are keen to achieve a build process that provides cost, time and quality certainty. Strategically this can be achieved using a manufacturing approach. Merit over the last 10 years has invested significantly in the development of manufactured construction products and delivery systems. Modulex will benefit significantly from the Merit IP and build processes.”
The Merit Group and Merit Holdings entered administration in November 2025 following cash-flow pressures arising from project-specific payment issues. The administration process is being managed by the Joint Administrators, James Lumb and Will Wright of Interpath, who continue to work with creditors of the former group companies. The directors are acutely aware of the impact that the administration process has had on suppliers and other stakeholders connected to the former businesses. While the administration remains a matter for the appointed administrators, the formation of Merit allows the intellectual property and technical innovation created historically to be taken forward within a newly capitalised organisation.
Tony Wells, CEO of Merit, said: “Merit represents a new chapter. The business has been established with new investment partners, new governance and a refreshed operating model. This structure allows us to build on proven intellectual property while developing new capabilities for the future.”
“The administration of the former businesses was a difficult outcome and resulted in the loss of a significant manufacturing presence in the region. Merit has been created to move forward positively, supported by strategic investment and international opportunity, with a focus on design, manufacturing and delivery excellence.”
Brad Antin, Chairman of HBEM and owner of the Caddy Group, a specialist construction recruitment business, commented: “This partnership brings together capital, intellectual property and international capability. It is positive that the research, development and innovation embedded within the acquired IP can now be progressed and made available to clients in the UK and overseas through a newly formed organisation.”
