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Skyline Champion Corporation Created as Skyline and Champion Home Builders Announce Closing of Business Combination, Exclusive Details

SoheylaKovachMHProNews 50x50 Q75Skyline Corporation (“Skyline”) and Champion Enterprises Holdings, LLC (“Champion”), the parent company of Champion Home Builders, Inc., publicized the closing of the previously announced combination of their operations.

Exclusive details will be found near the end of this report.

Via a press statement to the Daily Business News, carried by a Berkshire Hathaway affiliate – Business Wire – the newly combined company “will now operate as Skyline Champion Corporation and its common stock will trade on the New York Stock Exchange under the ticker symbol “SKY.” Skyline had previously traded on the NYSE American exchange under the same ticker symbol,” per the release.

SkylineChampionLogoKeithAndersonCEOPhotoTitanDriveHomeManufacturedModularPrefabHousingINdustryDailyBusinessNewsMHProNews

We are very excited to close the transaction and look forward to operating as Skyline Champion Corporation,” said Keith Anderson, Skyline Champion’s Chief Executive Officer.

Skyline Champion is now the largest independent publicly traded factory-built housing company in the United States with combined revenue of more than $1.3 billion. The increased size and scale, coupled with a strong balance sheet and significant cash flow generation capability, has us well positioned to execute our long term growth strategy.”

The statement above reflects an adjustment to a prior claim spotlighted by the Daily Business News about the size of the company with respect to the balance of the industry at large.

There is a tremendous opportunity for Skyline Champion to take advantage of the attractive market dynamics in the industry given our broader geographic footprint across North America and our enhanced product offering. We will remain committed to providing quality products and outstanding customer service as we focus on executing our strategy on our newly enhanced platform,” Anderson said.

As we integrate the businesses, we continue to expect to achieve synergies of approximately $10 to $15 million, primarily driven by direct cost savings, reduced overhead costs and operational improvement opportunities,” the newly combined companies CEO said. Additional synergies are expected through cross-selling and distribution optimization through the combined company’s owned and independent dealer network.”

The complementary cultures and shared values of our legacy businesses are evident in the deep commitment to providing solutions to customers and delivering a broad range of quality products and value-added services. I am confident that this will translate into future success of Skyline Champion,” Anderson said, with the normal disclaimers about forward looking statements required by the SEC present. He thanked the employees for their hard work during the transition.

The closing ticker for the new stock tonight is as shown below.

SkylineChampionCombinationLogoAnnouncedCloseStock642018ManufacturedHousingINdustryDailyBusinessNewsMHProNews

Skyline (SKY) is traded on the NYSE, and is part of the MHProNews evening market report summary for tracked industry stocks.  Tonight’s report, is linked here.

As the Daily Business News recently and previously reported, certain plans were executed.

In conjunction with the closing of the transaction, Skyline issued approximately 47.8 million shares to Champion, representing 84.5% of the common stock of the combined company on a fully-diluted basis. Skyline also declared a special cash dividend of $0.62381 per share of Skyline’s common stock that was paid on May 31, 2018 to Skyline’s shareholders of record at the close of business on May 25, 2018,” per their release.

Jefferies LLC served as financial advisor to Skyline and Barnes & Thornburg LLP acted as Skyline’s legal counsel. Ice Miller LLP acted as legal counsel to Skyline’s Special Committee of the Board. RBC Capital Markets, LLC served as financial advisor to Champion and Ropes & Gray LLP acted as Champion’s legal counsel. Taft Stettinius & Hollister LLP acted as Indiana legal counsel to Champion,” their statement said.

Skyline Corp, Champion Home Builder M&A Updates, Stockholder Insights

Tweet Skyline Corporation and Champion Enterprises Holdings, LLC, the parent company of Champion Home Builders, Inc., previously announced merger/acquisition (M&A) is set to close within the next two weeks, according to sources familiar with the matter.   Recent press releases have not announced a set date, but they have pointed to a closing expected before … Continue reading
 
The firm is one of the industry’s vertically integrated operations.
ManufacturedHousingGoingVerticalReportDailyBusinessNewsMHProNews 575x323

About Skyline Champion Corporation:

Skyline Champion Corporation (NYSE: SKY) was formed in June of 2018 as the result of the combination of Skyline Corporation and the operating assets of Champion Enterprises Holdings, LLC. The combined company employs more than 6,800 people and is the largest independent factory-built housing company in North America. With more than 65 years of homebuilding experience and 36 manufacturing facilities throughout the United States and western Canada, Skyline Champion is well positioned with a leading portfolio of manufactured and modular homes, park-models and modular buildings for the multi-family, hospitality, senior and workforce housing sectors,” their statement explained.

In addition to its core home building business, Skyline Champion operates a factory-direct retail business, Titan Factory Direct, with 21 retail locations spanning the southern United States, and Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from 10 dispatch locations across the United States,” according to the media release.

Skyline Champion builds homes under some of the most well know brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada,” their release concluded.

Pecking Order – Industry Facts

The new Skyline Champion combination represents about 17 percent of the factory built housing industry’s total shipments.

Cavco weighs in at about 13 percent, per their recent quarterly statement.  Cavco’s president, Joe Stegmayer, is a former Clayton division president.

Berkshire Hathaway owned Clayton Homes has about 50 percent of the industry’s total production, according to various industry sources, and the recent Warren Buffett, Berkshire Hathaway annual shareholder letter.

ClaytonHomesSkylineChampionCavcoIndustriesBalanceofIndustryManufacturedHousingIndustryConsolidationGraphicPieChartMHProNews

So, the three firms now represent 80 percent of the industry’s production.

For related reports, see the below. MHProNews holds no position in any of the listed firms. “We Provide, You Decide.” © (News, analysis, and commentary.)

(Third party images, and content, are provided under fair use guidelines.)

Skyline Corp, Champion Homebuilders Conference Call Presentation Facts, Figures, Forward-Looking Statements, Planned Merger Detail$

Tweet A few minutes after 9 AM ET, the previously announced conference call between Skyline and Champion took place. The call lasted about 30 minutes. There was no Q & A after their presentation. The presenters generally followed the information provided in their power point.  The meat of the presentation, minus the typical SEC disclaimers, … Continue reading
Tweet There is nothing quite like pie charts, facts and figures to dramatically illustrate what has taken place in HUDVille – the manufactured housing industry – over the last several years. Trend lines are important for lenders, investors, and business owners to be aware of, and these graphics should also be noteworthy to policy advocates, … Continue reading
 
Tweet “The housing industry today is facing a different kind of crisis: not enough homes for sale.” – Lawrence Yun, Forbes Contributor.   “A decade ago, the housing sector was in a mess. The mistakes of easy subprime lending resulted ultimately in the catastrophic collapse of the housing sector. Home values collapsed by a third … Continue reading
 
Tweet “Rollohome was started by Elmer Frey in his family barn as a one-time trailer sale. Soon he and his brothers Roland, Harold and Norman and his brother-in-law John Bertschie, began large scale operations in the sale and production of mobile homes. By 1950, Rollohome, was the city’s fastest growing business and within two years … Continue reading
 

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SoheylaKovachMHProNews 50x50 Q75Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.