Building materials distribution giant SIG has sold its modular offsite construction business for £1 to regeneration specialist Urban Splash Modular.

Manchester-based Urban Splash originally made its name by acquiring unwanted Victorian mills and transforming them into apartments and offices for the creative industries.  It is now focused on modular housing and launched its offsite concept House last year.

The acquisition includes SIG’s modular factory in the East Midlands, all the IP and patents of its modular housing system and around 70 staff. 

Urban Splash chairman Tom Bloxham said: “Urban Splash is committed to expanding its offsite construction capacity and this purchase is a way to vertically integrate our business and give us control of the production of our houses. It is a testament to our commitment to, and investment in, modular housing.”

Building Systems reported sales of £9.2m in 2016 but suffered a £5.7m loss.  Assets worth £4.5m will be transferred in the sale.