Champion Home Builders and Champion Retail Housing, subsidiaries of Skyline Champion Corp. in Troy, has closed on its previously announced $313 million acquisition of Mississippi-based manufactured home dealer Regional Enterprises.
“We are excited to announce the closing and to welcome Regional Homes to the Skyline Champion family,” says Mark Yost, president, and CEO of Skyline Champion. “We believe Regional Homes is an excellent strategic fit given their customer-centric selling approach which goes together with our on-going efforts to enhance our customers’ buying experience.
“Regional Homes’ strong presence in Alabama and Mississippi strengthens Skyline Champion’s market positioning as a leading provider of attainable housing solutions by expanding our captive retail and manufacturing distribution in this large 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, its talented team, as well as available synergy capture.”
In conjunction with the closing of the transaction, Skyline Champion announced that Heath Jenkins will serve as the president of the company’s captive retail operations.
“We are fortunate to add Heath to the Skyline Champion team,” Yost says. “Heath not only brings years of industry retail experience, and strong leadership capabilities exemplified by the strength and tenure of the Regional Homes’ team but also exhibits an unwavering commitment to put the customer first. These are traits that perfectly align with our core operating principles.”
The purchase price was approximately $313 million, net of cash acquired, plus assumed debt, is primarily related to inventory floor plan liabilities, of $93 million. In addition to the purchase price, the transaction is subject to an earnout provision as well as customary net working capital adjustments. Skyline Champion funded the acquisition with cash on hand and $30 million of the Company’s common stock.
Skyline Champion Corp. is one of the largest homebuilders in North America and employs approximately 7,600 people. It has 44 manufacturing facilities throughout the United States and western Canada. It produces manufactured and modular homes, ADUs, park-model RVs. and modular buildings for the single-family, multi-family, hospitality sectors.
Regional Homes has 42 dealerships in Mississippi, Louisiana, Alabama, Florida, North Carolina, South Carolina, and Texas.
