Skyline Champion in Troy to Acquire Regional Homes in Mississippi

Champion Home Builders and Champion Retail Housing, subsidiaries of Skyline Champion Corp. in Troy today announced a definitive agreement to acquire Regional Enterprises in Mississippi, and related companies. Terms of the deal were not disclosed.
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Skyline house
Skyline Champion is expanding its operations in the southern United States though its acquisition of Mississippi-based Regional Homes. // Photo courtesy of Skyline Champion

Champion Home Builders and Champion Retail Housing, subsidiaries of Skyline Champion Corp. in Troy today announced a definitive agreement to acquire Regional Enterprises in Mississippi, and related companies. Terms of the deal were not disclosed.

Regional Homes is the fourth largest HUD manufacturer in the United States and operates three manufacturing facilities in Alabama and 43 retail sales centers across the southeast. They sold approximately 5,000 new homes and had estimated revenue of approximately $523 million last year.

“We are excited to welcome Regional Homes and its 1,200 employees to the Skyline Champion family,” says Mark Yost, president and CEO of Skyline Champion. “We believe Regional Homes is an excellent fit given their customer-centric selling approach which goes hand-in-hand with our on-going efforts to enhance our customers’ buying experience. The transaction is expected to accomplish several objectives within our strategic framework for profitable growth. “

The purchase price will be approximately $328 million plus assumed debt, primarily related to inventory floor plan liabilities, of $130 million. In addition to the purchase price, the transaction is subject to an earnout provision as well as customary net working capital adjustments.

“We couldn’t be more excited to partner with a company that not only has a reputation of excellence in our industry, but one that perfectly complements our business model and strategic goals,” says Heath Jenkins, owner of Regional Homes. “And with Skyline Champion’s recent announcement of their partnership with ECN Capital Corp., our capacity to provide tangible value to our customers has increased exponentially. This transaction provides a significant opportunity to make a positive impact for our customers and employees.”

Skyline Champion expects to fund the acquisition with cash on hand and $30 million of the Company’s common stock, which is subject to certain restrictions. The transaction is subject to regulatory approval and is expected to close during the company’s fiscal 2024 third quarter.

Skyline Champion is a leading producer of factory-built housing in North America and employs approximately 7,600 people. With more than 70 years of homebuilding experience and 44 manufacturing facilities throughout the United States and western Canada, Skyline Champion has a portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors.

In addition to its core home building business, Skyline Champion provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 31 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.