by RC Williams
Cavco Industries Inc. (NASDAQ:CVCO) tells MHProNews that it has signed a Letter of Intent, and has reached an understanding, on terms to acquire Lexington Homes, Inc.
The purchase of Lexington is expected to improve Cavco’s ability to participate in the growing Southeastern housing market, as well as better serve the needs of Lexington customers. The purchase price, due to be paid in cash at closing and funded with Cavco’s internal capital, was not disclosed.
Credit: Lexington Homes.
The transaction is subject to the satisfaction of customary closing conditions.
Cavco has been in the news recently, and in their most earnings report, the company delivered $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.11.
Credit: Cavco Industries.
Those results fueled investor activity, as JP Morgan Chase, BNP Paribas Arbitrage SA, and the Teacher Retirement System of Texas all either increased their stakes in the company or purchased new positions. Cavco was also recently featured as British insurance giant Legal & General made a significant move in its stake in the company.
As Daily Business News readers are aware, Phoenix, AZ-based Cavco Industries is one of the largest producers of manufactured homes, as well as a builder of modular and park model homes, vacation cabins and commercial structures. Factory-built homes are designed and produced under such brand names as Cavco Homes, Fleetwood Homes and Palm Harbor Homes.
Cavco 1 year look. Credit: Bloomberg.
Lexington Homes provides affordable manufactured housing from its manufacturing plant in Lexington, Mississippi to its retail distributors in the Southeastern United States. The company was founded in 2004 by individuals with combined experience of over 100 years in the manufactured housing industry.
Cavco is also one of the manufactured home industry connected stocks tracked every business day by the Daily Business News, with the most recent report, linked here. ##
(Image credits are as shown above.)
Submitted by RC Williams to the Daily Business News on MHProNews.com.
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