Skyline Champion Closes $313M Acquisition of Retailer Regional Homes With 42 Dealerships
Champion Home Builders and Champion Retail Housing, subsidiaries of Skyline Champion Corp, has closed on its previously announced $313 million acquisition of Mississippi-based manufactured home dealer Regional Enterprises.
Regional Homes has 42 dealerships in Mississippi, Louisiana, Alabama, Florida, North Carolina, South Carolina, and Texas.
“We are excited to announce the closing and to welcome Regional Homes to the Skyline Champion family,” says Mark Yost, President, and CEO of Skyline Champion. “We believe Regional Homes is an excellent strategic fit given their customer-centric selling approach which goes together with our on-going efforts to enhance our customer’s buying experience.
“Regional Homes’ strong presence in Alabama and Mississippi strengthens Skyline Champion’s market positioning as a leading provider of attainable housing solutions by expanding our captive retail and manufacturing distribution in this large region. We expect this transaction to generate solid returns over time with meaningful stakeholder value creation from day one, supported by Regional Homes’ attractive margin profile, its talented team, as well as available synergy capture.”
In conjunction with the closing of this transaction, Skyline Champion announced that Heath Jenkins will serve as president of the company’s captive retail operations.
The purchase price was approximately $313 million, net of cash acquired, plus assumed debt, is primarily related to inventory floor plan liabilities of $93 million. In addition to the purchase price, the transaction is subject to an earn-out provision as well as customary net working capital adjustments. Skyline Champion funded the acquisition with cash on hand and $30 million of the Company’s stock.
Skyline Champion Corp. is one of the largest homebuilders in North America and employs approximately 7,600 people. It has 44 manufacturing facilities throughout the United States and western Canada. It produces manufactured and modular homes, ADUs, park model RVs and modular buildings for the single-family, multi-family, and hospitality sectors.
Source: Business Daily
