Hull-based investment group Reds10 has acquired a stake in ESL Fabrication Engineers (ESL), a fast-growing steel fabrication specialist in East Yorkshire. The move is designed to bolster Reds10's industrialised construction model by integrating critical steel fabrication capabilities in-house, enhancing delivery strength and supporting the business's next growth phase.
The factory locations of both companies are geographically complementary. Reds10 manufactures all its buildings off-site at its advanced facility in Driffield, while ESL operates from a purpose-built facility just 20 miles away in Hull.
Founded in 2010 by father and son Paul and Gareth Thompson, ESL specialises in comprehensive steel fabrication across the UK, covering manufacture, installation, repair, and maintenance. The business has grown steadily, reaching a turnover of £7 million in 2026 and employing nearly 50 people at its Kingston upon Hull factory.
ESL will become part of the newly established Reds10 Group, which includes Reds10 and its eight sister companies. The group aims to drive the wholesale industrialisation of design, production, and construction, integrating AI at every stage.
Paul Ruddick, chief executive of Reds10 Group, said: "Having worked with ESL for several years, we've seen first-hand the consistent quality of their service and their ambition for excellence and growth, values that closely align with our own. Bringing steel fabrication into the Reds10 Group adds a critical piece of the jigsaw as we launch our next phase of strategic growth to exploit advancing technologies, while integrating AI at every level of the business."
Gareth Thompson, co-founder and managing director of ESL, said: "We've come a long way since ESL's inception in 2010, and our partnership with Reds10 feels like a natural next step that will bring clear benefits to both businesses. This marks an exciting next phase in our evolution, and we look forward to building on the strong working relationship we've developed with Reds10 in recent years and maximising the opportunities ahead."
The partnership follows Reds10's financial results for 2024/25, which showed revenue of £144.7 million. The company has an ambitious plan to grow revenue to £500 million and is targeting expansion into the healthcare sector, as well as affordable housing and temporary accommodation. Reds10 manufactures all its buildings off-site at its Driffield facility, which houses five factories totalling 300,000 square feet.
