Skyline Champion To Acquire Regional Enterprises

(RTTNews) - Skyline Champion Corp.(SKY), a residential construction company, announced a definitive agreement to acquire HUD manufacturing firm, Regional Enterprises LLC which operates three manufacturing facilities in Alabama and 43 retail sales centers across the southeast.

"The transaction is expected to accomplish several objectives within our strategic framework for profitable growth. Notably, Regional Homes' strong presence in the large markets of Alabama and Mississippi helps expand our captive retail and manufacturing distribution in that 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," said Mark Yost, Skyline Champion's President and Chief Executive Officer.

The acquisition price is around $328 million. Additionally, the deal is subject to an earnout provision. The company is funding the transaction with cash on hand and $30 million of common stock.

Regional Homes has sold around 5000 new homes and has an estimated revenue of approximately $523 million and an estimated EBITDA of $84 million for the year ending December 2022.

The transaction is expected to close in the third quarter of fiscal 2024.

On Friday, shares of Skyline closed at $63.13 down 0.66% on the New York Stock Exchange.