Driffield-based offsite modular construction group Reds10 has taken a partial stake in Hull steel fabrication business ESL Fabrication Engineers. The deal brings the 50-employee firm into the newly formed Reds10 Group, alongside Reds10 and its eight sister companies.
Strategic investment
ESL Fabrication Engineers was established in 2010 by father and son Paul and Gareth Thompson. The company specialises in steel fabrication, producing walkways, spiral staircases and fire escapes from its purpose-built facility on Burma Drive. Its structures have been exported to destinations including New York and Papua New Guinea.
Reds10, which manufactures buildings in Driffield, has made a strategic investment in ESL after a five-year collaboration on public sector projects. The two firms have a well-established working relationship, focusing on defence, education, justice and health sectors.
Leadership comments
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, added: "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."
Financial performance and growth targets
Reds10 posted revenue of £144.7m and operating profit of £6.8m. The group, which also operates in the South East, is targeting revenue growth to £500m through expanded activity in healthcare, affordable housing and temporary accommodation markets. Its five Driffield manufacturing facilities span 300,000 sqft, with structures transported and erected on sites across the UK.
