VESTA Modular Announces Acquisition of California-based Commercial Mobile Systems

December 8, 2021

SOUTHFIELD, MI – VESTA Modular (“VESTA” or the “Company”) a portfolio company of Kinderhook Industries, LLC has completed its third acquisition of 2021. On December 8, 2021, VESTA acquired California-based Commercial Mobile Systems (“CMS”), which was founded in 1981 by Mark A. Morton. CMS is based in Riverside, California and serves customers in the Western United States with rental and sales of modular buildings.

“For years we have been looking for the right opportunity to partner with a great operator to lead our West Coast expansion initiatives and we are incredibly excited to have found Mark’s business and his team led by Chris Parker,” said VESTA CEO Dan McMurtrie. “The CMS team will help us continue to grow our branch network in order to ensure we can service customers from coast-to-coast.”
As part of this transaction, Chris Parker will assume the role of Western Region Manager focused on continued growth on the west coast and Mark will remain involved as an investor. “While we have seen significant growth in our business over the past few years, we are really excited to find out what we can accomplish with the support of the broader VESTA enterprise,” said Parker. “Our team is ready to hit the ground running to execute on our plan to expand our foothold in California and beyond.”

With this acquisition, VESTA continues its growth strategy by adding its 8th branch location. All CMS employees will join the VESTA team. Customers of CMS will experience a seamless transition to VESTA as the companies integrate over the coming weeks. Harvey & Company served as investment advisor, Kirkland & Ellis served as legal counsel, and Alvarez and Marsal handled financial diligence for VESTA. Financing for the transaction was provided by a syndicate led by Flagstar Bank.

About VESTA Modular

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 6,000 units to customers across a range of end markets and (ii) modular project installation whereby it facilitates the design, construction, and installation of modular spaces. 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, Dallas, Elkhart, Houston, Miami, Mobile, Nashville and Riverside.

For more information please visit: www.vestamodular.com

About Kinderhook Industries

Founded in 2003, Kinderhook Industries, LLC is a private investment firm that manages over $4.5 billion of committed capital. We have made in excess of 300 investments and follow-on acquisitions since inception. Kinderhook’s investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and our proprietary network of operating partners. Our focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental / business services, and automotive / light manufacturing sectors. We have a track record of successfully and consistently building industry leaders.

For more information, please visit: www.kinderhook.com