A winning bid at a bankruptcy auction in Salt Lake City last week has sharply grown Vesta Modular and Housing Solutions Inc., one of the portfolio companies of Birmingham-based Simon Group Holdings.
Vesta's bid of $15.3 million in cash beat three other bidders for more than $100 million in assets of Salt Lake City-based commercial modular manufacturer M Space Holdings LLC, an owner of about 1,700 modular housing units, office-space trailers and temporary classrooms around the country.
|Daniel McMurtrie, CEO, Vesta Modular|
Before co-founding Vesta, its CEO, Daniel McMurtrie, had been vice president and general manager of Champion Home Builders Inc. in Troy from 2008 to 2014.
Before the auction, Vesta, which was founded in 2014, owned about 300 modular units. They filed Chapter 11 Bankruptcy in mid-2016.
"This is the minnow eating the fish," said Sam Simon, founder of Atlas Oil Co. in Taylor and CEO of Simon Group Holdings. "I'm a big believer that business is all about the buy, not the sell, and this was a great buy for us."
Simon said Vesta will close M Space's Salt Lake City office but will retain most of its employees, growing its headcount from six to about 20.
The company said monthly revenue from those units fell from $440,000 a month in late 2014 to about $104,000 a month by the spring of 2016, an amount that left it unable to service its debt.