VESTA Modular Grows Into Northern California Through the Acquisition of Performance Modular, Inc.

VESTA Beyond the Box

VESTA Modular ("VESTA" or the "Company"), a portfolio company of Kinderhook Industries, LLC, has completed its fifth acquisition since partnering with Kinderhook in December 2020. On July 8, 2022, VESTA acquired California-based Performance Modular, Inc. ("PMI"), which was founded in 2003 by a team led by Don Shoop. Based in Rancho Cordova, California, PMI provides both temporary and permanent modular solutions across a diverse set of end markets.

"Since our acquisition of CMS in December 2021, we have sought opportunities to grow beyond the Southern California market," said VESTA CEO Dan McMurtrie. "We are excited to partner with Don Shoop, a well-respected industry veteran, as we continue to execute VESTA's geographic expansion strategy. Through this partnership, we believe we will be able to rapidly scale our operations in Northern California building upon the foundation that Don and his team at PMI have established."

PMI's strategically located branch in Northern California will serve as a key hub for VESTA operations in the region. With this acquisition, VESTA continues its growth strategy by adding its 11th branch location. As part of the transaction, Don Shoop will continue as the Branch Manager with a focus on high-quality customer service. "For nearly 20 years, PMI has prided itself on delivering high-quality service with a personalized touch to customers across the region. We are excited to partner with an organization who shares our values and look forward to growing our offering with the support of the VESTA team."

"The PMI team has demonstrated an ability to capture significant market share across several attractive end markets in Northern California," said Kinderhook Managing Director Rob Michalik, "PMI possesses a well-maintained fleet and deep relationships in the region that will fit seamlessly into VESTA's expanding national network."

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 https://vestamodular.com/.

About Kinderhook Industries

Founded in 2003, Kinderhook Industries, LLC is a private investment firm that manages over $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 https://www.kinderhook.com.

Source: VESTA Modular