M&A activity snapshot
Modular construction is growing from a small base. The Modular Building Institute, working with FMI, sized the U.S. permanent modular construction market at $20.5 billion in 2025, about 5.1% of construction activity in key segments, with 6.5% annual growth forecast through 2030. Multifamily is the largest segment, and MBI points to office and data center construction as an emerging opportunity.
This page covers off-site panelized and volumetric building manufacturers and the companies that install their output. The manufacturing base is small: BLS counted 980 prefabricated wood building manufacturing establishments in 2024 with about 17,400 employees, and 1,497 prefabricated metal building and component establishments with about 37,800.
Most disclosed M&A is in factory-built housing. Cavco agreed to buy American Homestar for $190 million in cash in 2025, and Skyline Champion bought Regional Homes for about $313 million net of cash in 2023. Census counted 102.7 thousand new manufactured homes shipped in 2025. Those are HUD-code homes, a related market with its own federal code, and some companies, such as Commodore, build both.
Who is buying
Public factory-built housing manufacturers. Cavco and Skyline Champion buy plants to add capacity and regional reach. Cavco's earlier purchase of Commodore, the largest independent builder of manufactured and modular housing in the U.S., cost $153 million. Regional Homes came with three Alabama plants and 43 retail sales centers, so that deal bought distribution as well as production.
Modular space leasing companies. These buyers own fleets of relocatable buildings rather than build permanent ones. WillScot's $3.8 billion agreement to buy McGrath RentCorp ended when the two companies found no commercially reasonable path to clear the necessary regulatory requirements, a sign that antitrust limits apply to the largest players.
Growth and venture capital. Venture money funded several volumetric startups, with mixed results. Katerra raised close to $3 billion in equity but was unable to generate a profit before its 2021 bankruptcy. Boxabl went public in 2026 through a SPAC at a $3.5 billion valuation, a figure that came from the merger terms rather than a cash sale.
What buyers look for
Plant economics. Buyers underwrite each factory: capacity use, labor per unit, and margin. American Homestar reported $194 million of revenue, $17.8 million of adjusted EBITDA, and 1,676 homes produced over twelve months, the kind of unit-level disclosure a buyer expects from any modular target.
A real cost or speed advantage. The pitch for off-site construction is time and cost. MBI says factory production can reduce project timelines by 20% to 50%. In housing, Census data shows new manufactured homes cost $84.45 per square foot in 2024, against $168.86 for a new site-built home excluding land. Buyers check that a target's own projects show that advantage.
Code approvals. Modular buildings are designed to the same codes and standards as conventionally built facilities, so a manufacturer needs approvals in each state it ships to. HUD-code homes follow the federal standard in 24 CFR Part 3280. Buyers value a target with approvals in the states they want to enter.
Backlog and distribution. A plant without orders is a fixed-cost problem. Buyers look for repeat developer, builder, or dealer relationships that fill the line.
What makes a strong company
A modular or prefab manufacturer that attracts buyers typically has:
- Plants that are profitable at current volume, with unit costs tracked by product line.
- Signed orders that fill the factory for months ahead, from more than one developer or dealer.
- State modular approvals, and HUD-code certification where relevant, in its target markets.
- An installation and set crew, or reliable partners, so projects close out on schedule.
- A product mix aimed at the segments MBI identifies as largest or growing, such as multifamily.
- A balance sheet that does not depend on new equity to keep the plants running.
Valuation and deal structure
Disclosed multiples cover a wide range. By Axia's arithmetic, Cavco's $190 million against $17.8 million of adjusted EBITDA for American Homestar is about 10.7x. Skyline Champion paid about $313 million net of cash, plus $93 million of assumed debt mostly tied to inventory floor plans, for a business with an estimated $84 million of 2022 EBITDA. By Axia's arithmetic on those disclosed figures, that works out to under 4x before the debt, or under 5x including it. Regional Homes also included retail sales centers, so it is not a pure manufacturing comparable.
No public multiple data exists for small commercial modular or panelized manufacturers. The deals above are factory-built housing companies and should be read as the closest proxy, not a direct comparable. Floor-plan debt and dealer inventory often form part of the price, as the Regional Homes deal shows. To see where your own numbers sit, use the valuation tool.
Outlook
MBI's forecast of 6.5% annual growth through 2030 would make modular one of the faster-growing parts of construction if it holds. Multifamily housing and data center work are the segments to watch. Expect continued plant acquisitions by public factory-built housing companies, and selective interest from building-products and contractor strategics in manufacturers that already serve their customers.
Buyers will stay disciplined after Katerra. Manufacturers with profitable plants and full order books will draw interest; capital-heavy models that need outside equity to scale will struggle. For the wider market, see Construction & Specialty Contracting M&A. For how buyers build target lists in niche manufacturing, see how to build an M&A target list.