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Posts Tagged ‘acquisitions’

Acquisition, and Rumors of a Billion Dollar Acquisition, for Hometown America

April 25th, 2017 Comments off
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Credit: Gateway Lifestyle, Hometown America.

In Australia, manufactured home builder and community owner Gateway Lifestyle Group has seen significant growth since the Daily Business News reported a potential deal with Hometown America last August to purchase National Lifestyle Villages (NLV), Western Australia’s largest operator of manufactured home communities.

At the time, the proposed deal would have entailed Gateway acquiring NLV’s land holdings and project pipeline, while Hometown would obtain the company’s passive investment income stream currently held by private equity giant Blackstone.

Blackstone had entertained a possible sell of their portfolio stake for a rumored $225 million, although official comments from the firm said they were “not actively seeking.”

According to The Australian, the manufactured home estate (MHE) segment in the country focuses on providing affordable community living to people 55 and over, similar to the seniors-only communities in the U.S.

Gateway Lifestyle Group was created in 2009, and now owns and operates 55 communities, with more than 9,400 individual sites for manufactured homes.

With the Australian manufactured home market in its early stages, significant opportunity exists. And that has put Hometown and Gateway Lifestyle Group in a potential head-to-head battle.

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Credit: The Australian.

Most MHEs in the country are privately owned and operated, so the market is highly fragmented. This provides for significant opportunities for acquisitions, and analysts project that the current pipeline of opportunities will provide several years of growth via underfunded retirees who need affordable housing.

In recent weeks, Hometown America decided to formally enter the Australian market via a MHE purchase in Port Macquarie through its subsidiary Hometown Australia.

This move is in addition to a November 2016 rumor that Hometown America was planning a takeover bid for Gateway Lifestyle and Ingenia Communities, valued in excess of $1 billion.

It was suggested that Bank of America Merrill Lynch could be involved in a prospective transaction, but who would actually be involved remains unclear. The Australian reported that Gateway could fetch a purchase price in excess of $643 million.

MHCWeighsAcquisitionOfferUnderStrangeCircumstancescreditBriarcrestEstates-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Briarcrest Estates.

Founded in 1997, Hometown America is a privately held company that owns and operates manufactured housing communities across the country. Today, the company operates more than 45 communities in ten states in the U.S.

For more on Hometown America, including their proposed acquisition of Laconia, New Hampshire-based Briarcrest Estates, click here. ##

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews

Manufactured Housing Industry Acquisitions Announced

March 10th, 2017 Comments off
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Credits: Barrett School of Business, companies.

On the acquisition front in the manufactured housing industry, Universal Forest Products, Inc. (NASDAQ: UFPI) has announced two acquisitions.

Through one of its affiliates, UPFI has closed on the purchase of certain assets of Quality Hardwood Sales.

Based in Nappanee, Indiana, Quality Hardwood Sales is a manufacturer and supplier of hardwood products, including components for cabinets used in homes and recreational vehicles.

According to Street Insider, the acquisition is UPFI’s first operation devoted to hardwood products, and will expand the company’s portfolio while providing Quality Hardwood with additional markets for its products and the opportunity to grow its customer base and product offering.

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Matthew Missad. Credit: UFPI.

Quality Hardwood has exceptional manufacturing expertise, a strong management team that’s staying on, and products that are known in the industry for their superiority,said Universal CEO Matthew J. Missad.

In addition, its leaders share our devotion to lasting customer relationships and to diversification and growth, and will be a great addition to the Universal family of companies.

Founded in 2001, Quality Hardwood had net sales of approximately $30 million in 2016. Current management team will remain with the company.

UPFI has also announced that it has closed on the purchase of a previously announced acquisition, Robbins Manufacturing Co.

A Robbins facility. Credit: Robbins.

Based in Tampa, Florida, Robbins manufacturers treated wood products with facilities in Florida, Georgia and North Carolina.

Founded in 1938, the company has two divisions, including Robbins Treating and Manufacturing, which operates six wood treating facilities, including an operation in Tarrytown, Florida, which it will continue to operate. The remaining five operations are included in the acquisition, with net sales of $86 million in 2016.

Headquartered in Grand Rapids, Mich., UFPI is a component supplier to the MH and RV industries.

As Daily Business News readers are already aware, UFPI is also one of the industry stocks monitored each business day. For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##

 

(Image credits are as shown above.)

 

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Killam Properties Reports Q4, 2016 Earnings

February 16th, 2017 Comments off
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A Killam property in London, Ontario, Canada. Credit: Killam.

Killam Apartment REIT (TSX: KMP.UN) has reported its financial results for the fourth quarter and year ended December 31, 2016.

Killam generated funds from of operations (FFO) per unit of $0.21 in Q4 2016, a 5.0 percent increase over Q4 2015.

Similar to the results for the year, growth was attributable to higher earnings from the same property portfolio, lower interest expense from refinancing and the Q3 2016 repayment of $57.5 million of convertible debentures, and growth from acquisitions and developments.

 

Killam achieved same property revenue growth of 1.8 percent in in the quarter, attributable to increased rents of 1.6 percent and improved occupancy levels. The same property apartment portfolio achieved 96.1 percent occupancy during the fourth quarter, up from 95.7 percent during Q4 2015.

Killam delivered strong results in Q4, and for the year,” said Killam President and CEO Philip Fraser.philipfraser-presidentceokillamproperties-manufacturedhomecommunitiesdailybusinessnews-mhpronews

We achieved many successes during 2016, reflected in our financial performance: solid growth from our existing portfolio, strong demand for our recently completed developments, portfolio-enhancing acquisitions in our core markets, and interest expense savings. In addition, we strengthened our balance sheet with reduced debt levels and an expanded acquisition credit facility.”

Overall in 2016, Killam generated FFO per unit of $0.86, an 8.9 percent increase from the $0.79 generated in 2015. FFO growth was attributable to a 4.0 percent increase in same property net operating income (NOI), interest expense savings on mortgage refinancings and convertible debenture redemptions, and accretive returns from developments and acquisitions.

Killam also completed $71.5 million in acquisitions in 2016, contributing positively to net income, and their newest development, Southport Apartments, was fully leased by November and also positively impacted earnings in the year.

The benefit of our established development program stood out last year,” said Fraser.

The lease-up of Southport Apartments in Halifax exceeded our expectations and reinforced the opportunity to add value through developments. We are excited about our two current projects and our pipeline of over 1,000 units for future development. Development will continue to be an important part of Killam’s growth strategy going forward.

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Killam 1 year look. Credit: Bloomberg.

Daily Business News coverage of the most recent acquisitions by Killam is linked here.

In addition to multifamily apartments, Killam owns 35 manufactured home communities in Atlantic Canada and Ontario.

Killam is also one of the manufactured home industry stocks monitored each business day on the MH Industry’s leading professional news resource, the Daily Business News, on MHProNews. For the recent closing numbers yesterday on all MH industry-connected tracked stocks, please click here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Patrick Industries Previews Q3 2016 Earnings Call, Webcast

October 17th, 2016 Comments off
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Credits, Patrick Industries.

Patrick Industries, Inc. (NASDAQ:PATK), one of the leaders in supplying the manufactured housing, RV and industrial markets, has announced that it expects to release its Q3 2016 financial results prior to the market open on October 27th.

As Daily Business News readers are already aware, Patrick has been in the news recently with the announcement of executive level promotions and their win at the INVESTIndiana Equity Conference, where they took home the 2016 Indiana Public Company of the Year award.

Patrick Industries’ share price has risen significantly over the last year, powered by acquisitions of Parkland Plastics, The Progressive Group, Cana Holdings, Inc., Mishawaka Sheet Metal, LLC, L.S. Manufacturing, Inc. and BH Electronics, Inc.

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Patrick Industries 1 Year Stock Chart. Credit: Bloomberg.

Speaking on Q2 2016 results, CEO Todd Cleveland provided details on future plans.

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Todd Cleveland. Credit: Patrick Industries.

We are pleased with our operating and financial performance in the second quarter, reflecting continued positive momentum both at the wholesale and retail levels in the industries we serve, the impact of the acquisitions we have made over the past several years, and the team’s commitment to driving the execution of our strategic plan,” said Cleveland.

In addition, we continue to increase overall content per unit in both the RV and MH industries through acquisitions and market share gains, and our industrial team continues to expand its presence and territorial coverage.  The acquisitions we have completed in 2016 have afforded us the opportunity to enter into new product spaces and to compete in new markets, expand our customer base, and bring additional value-added product offerings to our customers.

The company expects to host a conference call on Thursday, October 27, 2016 at 10:00 a.m. ET to discuss results and other business matters. Participants on the call will be CEO Todd Cleveland, President Andy Nemeth and CFO Josh Boone.

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Credit: Patrick Industries.

Interested parties can listen to a live webcast of the call on Patrick’s website under “Investor Relations.” A replay of the conference call will also be available via the Company’s investor relations website.

Patrick is one of the various industry-connected stocks monitored each business day on the industry’s only daily market report, featured exclusively on the Daily Business News.

For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##

Patrick Industries investor information:

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Chinese Buying U. S. Firms at Record Rate. Will housing Fall-ow?

February 24th, 2016 Comments off

China_buying_foreign_businesses__reuters__creditMHProNews has learned from businessinsider that Chinese companies are buying foreign businesses at a record rate as their own economy slows to a pace not seen in 25 years, and investors are feeding on buying outside the country. The Chinese government has to approve these deals, plus they have to obtain enough foreign exchange to make the acquisitions, something the government watches very closely. Additionally, many of the purchases are made by state-owned firms.

So far this year there have been 82 Chinese outbound deals worth $73 billion, reports Dealogic, up from 55 deals valued at $6.2 billion in the same period of 2015. Chinese outbound deals broke a record last year with 607 mergers and acquisitions (M&A) valued at $112.5 billion.

This year General Electric sold its appliance business to Qingdao-based Haier, while investment firm Dalian Wanda is buying a majority stake in Hollywood’s movie studio, Legendary Entertainment. Another Chinese investment firm is buying the Chicago Stock Exchange, and ChemChina is acquiring the Swiss seeds and pesticide group Syngenta for a reported $48 billion.

With the slowdown of the economy, Chinese corporates are increasingly looking to inorganic avenues to supplement their growth,” Vikas Seth, head of emerging markets in the investment-banking and capital-markets department at Credit Suisse, told businessinsider.Some of the primary motivations for cross-border acquisitions are access to new markets, brands, technologies, R&D capabilities and, in some cases, to products and supply chains that can be sold into a buyer’s distribution networks within China,” Seth added.

While Wall Street investment bankers are pleased—they earned $558 million in outbound deals to China last year, and have already pocketed $121 million this year—M&A deals are subject to scrutiny by the Committee on Foreign Investment (CFIUS) in the U. S. The committee prevented the sale of Philips’ lighting business to an Asian group for $3.3 billion.

CFIUS will likely take a hard look at the potential sale of the Chicago Stock Exchange, especially since 45 members of Congress sent a letter to CFIUS asking for a complete investigation. This proposed acquisition would be the first time a Chinese-owned, possibly state-influenced, firm maintained direct access into the $22 trillion US equity marketplace,” the letter reads. “While it is unclear the level of influence the state holds over CCEG, the firm is involved in a number of important Chinese sectors that would likely require close ties to the state.”

The housing industry is a huge part of the U. S. economy. How long might it be before the Chinese make serious acquisitions in the building sector? ##

(Photo credit: reuters–China buying foreign businesses)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Sunday Morning Weekly Recap – Factory Built – Housing News – for 11-30 to 12-6, 2014

December 7th, 2014 Comments off

sunday-morning-manufactured-housing-weekly-pro-news-recap-mhpronews-com12-1-6-14-Before jumping into the week that was, first a programing note for the work week starting Monday morning, around 4:30 AM ET. There will be an exclusive news item of interest for manufactured housing professionals.

Looking back at the week of 11-30-2014 to 12.6.2014, big acquisitions and finance news were among the top Daily Business News stories. Easier lending standards?  Yep, read that below too.

Most of the stories we’ve covered aren’t carried anywhere else in MH Industry news. In some cases, they’re mentioned in other’s emailed newsletters, but often weeks after they’ve happened.

That’s part of the reason why you’re here! You want your news on a timely, daily basis.

Manufactured, modular and other key housing from across the nation are covered in the headline news below.  Each headline is linked to their respective stories.

These including a story about a zoning case that’s a win for manufactured housing.

We also bring you more hard reports on statistics! Do you recall the Manufactured Home Merchandiser’s   popular production and shipment monthly report?  See that, modular production facts and much more in this week’s recap, below.

Saturday December 6th 2014

Kroll Bond Rating Agency Rates Carefree in the Manufactured Home Communities sector

Friday December 5th 2014

Sun Shines on Acquisition announcement, MHCV rises along with Dow, NADAQ and S&P

IBTS Report shows Increased gains in Manufactured Home Shipments and Production

Overall Housing Growth, but its a Mixed Bag with Modular Homes sales results

Sun Communities (SUI) Buying Orlando Manufactured Housing Portfolio in $258M Deal

What are the Top 10 Items Home Buyers Want?

Murex Properties CEO Steve Adler Rocks the House


Thursday December 4th 2014

October production increase in new Manufactured Home shipments

The Scope says UMH Properties Inc. a High Dividend Stock

Is US or China #1 Economy? Markets retreat, including MHCV

Negative views about Manufactured Housing in the media – do we just expect and accept it?

Advocates and Manufactured Housing experts working for Flood Victims

Wednesday Dec 3rd 2014

Street Scopes out SUN Communities Inc.

Liberty’s big Rise, Oil and Ruble slide, MHCV and DOW on upward glide

Seniors facing crisis, states the Economist and Senior Housing…but what about MH?

City and Residents locked in emotional tussle over MH Community closure

Gentrification and Community Closure playing out

Tuesday December 2nd 2014

Skyline and Sun Rise, Ditto MHCV, Dow, Nasdaq and S&P

Freddie Mac securitized financing for Manufactured Home Communities

DRM Investments use technology for enhanced Commercial Modulars

Pick Three – Manufactured Housing Stock Summary – Skyline, Cavco, Patrick – Dec 1, 2014

Monday Dec 1, 2014

Manufactured Housing Composite slips, Black Friday and Dow Dips, big Oil drips

Jim Pakulis proclaims bold growth plan for manufactured housing retailing

Council over-rides zoning, Manufactured Homes permitted in residential zoned areas

Relaxed lending standards to go into effect December 1, 2014

Fearless” Senator Elizabeth Warren, the CFPB’s ‘Mama’ buttresses potential 2016 presidential cred

Sunday, November 30, 2014

Sunday Morning Recap – factory built – housing news – for week November 23-29, 2014  ##

(Image credit: MHProNews)

 

Drew Industries: Shopping for Acquisitions?

November 5th, 2013 Comments off

As MHProNews reported Nov. 1, Drew Industries, Inc. announced revenue and net income gains for Q3 2013 over last year’s numbers, and has spent $3 million to increase its internal steel stamping capacity in the first nine months of this year, according to amm.com. Chief Financial Officer (CFO) Joseph S. Giordano says the company has $52 million in cash, no debt, unused lines of credit and is considering acquisitions. Through its subsidiaries, Lippert Components and Kinro, Drew supplies components to the manufactured housing and recreational vehicle industries through 31 facilities across the nation. Meanwhile, tickerreport.com stated Nov. 4 Zacks downgraded shares of Drew from outperform to a neutral rating. In trading on Nov. 4 the stock gained +4.18% to close at 51.88.

(Photo credit: Wikipedia–manufactured housing chassis)

UMH Revenues Nearly Double

May 9th, 2013 Comments off

From sys-con MHProNews has learned manufactured housing community owner UMH Properties, Inc. reports funds from operations (FFO) came within $222,000 of doubling from the first quarter 2012 to Q1 2013, from $2,738,000 to $5,254,000, from $0.18 a diluted share in Q1 of last year to $0.30 per diluted share Q1 2013. Total income grew from $10.9 million to $13.4 million for the same period. Net income attributable to common shareholders rose from $1,059,000 million in the first quarter of 2012 to $2,260,000 this most recent quarter ending. Total assets increased to $362 million from $300 million for the period 12-31-12 to 3-31-13. President Samuel A. Landy, noting UMH spent just under $75 million on acquisitions yielding over 2100 homesites in the quarter ending March 31, 2013, says, “Over the past few years, we have been very successful in harnessing gains on our securities investment and redeploying that capital into our community acquisitions. Our REIT securities portfolio continued to perform well generating $3.3 million in realized gains in the first quarter of 2013 and an additional $8.2 million in unrealized gains at quarter end.” UMH has established a $35 million unsecured line of credit with the Bank of Montreal which could be extended another $15 million. Landy says portfolio occupancy rose from 77 percent as of March 31, 2012 to 81 percent March 31, 2013. UMH owns and operates 68 manufactured home communities comprised of 12,800 developed homesites, and owns a portfolio of other real estate investment trust (REIT) securities.

(Image credit: UMH Properties, Inc.)

Green Courte Promotes Rudolph

May 7th, 2013 Comments off

MarketWatch informs MHProNews private equity real estate investment firm Green Courte Partners, LLC announces the promotion of Braden L. Rudoph to the post of Vice President, Asset Management. A senior associate since June 2011, Rudolph has been involved in acquisitions and asset management, and was involved in the company purchase of The Parking Spot, an airport parking property with 35 locations and 60,000 spaces. Through American Land Lease, Inc., which merged with Green Courte in Dec., 2008, the company owns and operates 50 land lease communities with 18,500 homesites. Rudolph has a Masters of Business Administration from the J. L. Kellogg School of Management at Northwestern University in Evanston, Ill.

(Image credit: Green Courte Partners, LLC)

UMH Acquires Tennessee Manufactured Housing Community

April 3rd, 2013 Comments off

Stockhouse reports UMH Properties, Inc. (NYSE:UMH) has acquired the 274 homesite Holiday Mobile Village in Nashville, Tenn. for $7,250,000. Situated on approximately 68 acres with an occupancy rate of 82 percent, MHProNews has learned this purchase bumps UMH into owning 68 communities with 12,800 developed homesites. Samuel A. Landy, President, stated, “We are pleased to announce the acquisition of this community. The Company remains very well positioned to continue to execute its growth strategy and we anticipate additional acquisitions in 2013.” UMH also owns a portfolio of REIT (real estate investment trust) securities. UMH closed up +0.96% at 10.57 in Tuesday’s (April 2) trading.

(Image credit: UMH Properties, Inc.)