“Champion Enterprises Holdings, LLC, the parent company of Champion Home Builders Inc., said that they reached a definitive agreement for the two companies to combine their operations,” per RTT News.
“Skyline and Champion Home Builders announce agreement on business combination to create the nation‘s largest publicly traded factory-built housing company,” reported Reuters, but that would appear to the Daily Business News to be a nuanced, factual error.
Berkshire Hathaway owned Clayton Homes would still be larger than the combination, according to publicly known information published by Cavco and the Manufactured Housing Institute.
“As per the terms of the agreement, Champion will contribute 100% of the shares of its operating subsidiaries, Champion Home Builders, Inc. and CHB International B.V., to Skyline. In exchange, Skyline is currently expected to issue about 47.8 million shares to Champion, representing 84.5% of the common stock of the combined company on a fully-diluted basis. Prior to closing, Skyline expects to declare a dividend to its existing shareholders of its excess net cash available for distribution under the agreement after certain transactional expenses,” said RTT.
“The combined company will be known as Skyline Champion Corporation and trade on the NYSE American under the ticker symbol “SKY.” The Board of Directors will comprise eleven members, nine of which will be directors designated by Champion and two of which will be designated by Skyline,” their report said.
“Upon closing of the transaction,” said RTT, “Champion Chief Executive Officer, Keith Anderson, will serve as Chief Executive Officer of Skyline Champion Corporation. Additionally, Laurie Hough, Champion Chief Financial Officer, will serve as Chief Financial Officer of the combined company.”
Per their reporting, Skyline anticipates nominating John Firth, current Chairman of the Board of Skyline, and Rich Florea, current Chief Executive Officer of Skyline, as Directors of the combined company and Art Decio, an original founder of Skyline and member of the Board of Directors since 1959, as a senior advisor to the combined company’s Board of Directors.
“I’m tired…” – Terry Decio, Skyline Homes, on Manufactured Housing
Skyline Champion Corporation’s principal offices will under the plan remain in Elkhart, Indiana with additional executive offices in Troy, Michigan.
This is the latest in the consolidations that have accelerated in the manufactured housing space in the last decade. ## (News, analysis, commentary.)
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