Modular building firm Katerra, based in Menlo Park, Calif., recently purchased UEB Builders and Fortune-Johnson for an undisclosed sales price. Scottsdale, Ariz.-based UEB is a general contractor specializing in commercial and residential projects, while Fortune-Johnson, based in Peachtree Corners, Ga., is a construction company specializing in multifamily residential projects. Both of the new acquisitions will be reflagged as Katerra.
“We are staying true to the vision we have held from the very start,” said Michael Hurst, principal of UEB Builders. “Katerra reflects what we both believe in—a shared desire to find a better way to build for our partners and their communities.”
Katerra is still on the lookout for additions that help expand its footprint across the United States. UEB and Fortune-Johnson already had existing client bases, consistent track records of success, and a presence in key real estate markets, including the Mid-Atlantic, Southeast, and Southwest. Firms having open minds about emerging technology and innovation in off-site construction methods also factor into the mix.
“Both companies share Katerra’s commitment to delivering increased value to customers by embracing technology and innovative methods,” said Michael Marks, CEO and co-founder of Katerra. “The expertise and fresh thinking brought by both UEB and Fortune-Johnson will play a key role in realizing our vision to transform the building industry in the United States.”
Katerra has snapped up 18 other companies in North America since 2015, including six architecture and contracting firms. The acquisitions were jump-started with funds secured through an $865 million loan from SoftBank Group Corp.’s Vision Fund. The firm’s next major manufacturing step will be completing its 577,000-square-foot factory in Tracy, Calif., which is scheduled to start operations this fall. The company is already operating home component factories in Spokane, Wash., and Phoenix as well as India.
As the cost factors of off-site and traditional stick building continues to narrow, the opportunities offered via multifamily are another area of industry interest.
“For more than 25 years, Fortune-Johnson has strived to be the premier contractor for multifamily projects in the Southeast and Mid-Atlantic,” said Brett Fortune, CEO of F-J General Contractors. “Our goal was always to build something better than the competition, and then to standardize it. Joining Katerra allows us to continue to do that, but at scale.”
