Sunbelt Modular Accelerates National Scale with Acquisition of Whitley Manufacturing

Sunbelt Modular, backed by private equity firm Littlejohn & Co., has taken a meaningful step in its consolidation strategy by acquiring Whitley Manufacturing. The transaction strengthens Sunbelt’s national manufacturing network and enhances its capacity to deliver custom commercial modular solutions with high quality and service consistency.

Deal Summary

• Acquirer: Sunbelt Modular, a modular building management company focused on sustainable, high-quality modular structures.
• Seller / Target: Whitley Manufacturing, a longstanding modular builder led by CEO Simon Dragan and President Drew Welborn.
• Locations: Whitley operates four manufacturing plants across the U.S.: South Whitley, Indiana; Rochester, Indiana; Marysville, Washington; and Leola, Pennsylvania.
• Strategic Rationale: The acquisition supports Sunbelt’s goal of scaling national production, optimizing cost through shared scale, and boosting its capability to offer more complex and custom modular building solutions.
• Stakeholder Continuity: Simon Dragan will remain involved as an investor, signaling continuity and alignment with Sunbelt’s vision.
• Platform Growth: This marks Sunbelt’s 12th acquisition since the platform began and the second since Littlejohn’s investment. With Whitley onboard, Sunbelt now has 15 manufacturing facilities.

Industry Context

Modular construction is continuing to consolidate as demand for efficient, scalable building solutions rises across commercial, educational, and healthcare sectors. As modular firms mature, scaling through acquisition is becoming a key tactic. Sunbelt’s buy of Whitley underscores a broader trend: modular platforms are racing to build nationwide footprints that can compete with site-built construction on cost, speed, and quality.

Furthermore, modular construction is shifting from stock units toward more custom, architectural builds. Firms like Whitley, with a reputation for craftsmanship and engineering capability, are increasingly valuable to buyers looking to serve higher-margin commercial clients.

Lower-Middle-Market Roll-Up Perspective

From a build-out perspective, Sunbelt’s strategy illustrates classic roll-up playbook dynamics:

1. Strategic Capacity Build: Rather than growing organically in new regions, Sunbelt acquires established plants to quickly scale production footprint.
2. Quality & Expertise Acquisition: Whitley’s skilled workforce and reputation for precision align with Sunbelt’s aspiration to deliver premium modular.
3. Deal Continuity: Retaining Whitley’s leadership team bolsters operational continuity and preserves institutional knowledge - a key asset in technical manufacturing.
4. Synergies Through Scale: By pooling procurement, operations, and manufacturing, Sunbelt can drive cost efficiencies while increasing complexity tolerance.
5. PE-Enabled M&A: With backing from Littlejohn, Sunbelt is executing an aggressive buy-and-build play, using capital to combine modular manufacturers into a unified, efficient network.

Why This Deal Matters Now

• National Reach Gains: Adding four factories expands Sunbelt’s geographic footprint and strengthens its ability to deliver modular buildings across multiple U.S. regions.
• Cost Pressure in Construction: As construction costs and labor challenges rise, modular becomes more attractive - but only for players who can deliver scale and reliability.
• Demand for Custom Modular: Clients increasingly demand more than generic modular units - buildings that are fully featured, code-compliant, and customized. Whitley helps Sunbelt meet that demand.
• Sustainability & Efficiency: Modular construction offers environmental and schedule advantages over traditional build - scale plays like this one advance those benefits.

Conclusion

Sunbelt Modular’s acquisition of Whitley Manufacturing positions it as a stronger, more capable national modular platform. The deal is not just about adding capacity - it’s about elevating service, optimizing cost through scale, and reinforcing Sunbelt’s role as a builder of sophisticated, high-quality modular structures.

For operators: This shows how deep technical or legacy modular firms can become attractive targets for platform consolidators.

For private equity: It underscores the appeal of modular platforms with distributed capacity and strong craftsmanship as acquisition platforms.

For clients: It signals the modular industry’s evolution toward more complex, high-spec buildings with national delivery.

Sunbelt Modular is clearly making a play to be among the leading modular providers in the U.S. - and this acquisition moves the needle significantly.