Cavco Industries Announces the Completion of the Acquisition of Manufactured and Modular Home Builder The Commodore Corporation
27 September 2021 - 11:00PM
Cavco Industries, Inc. (Nasdaq: CVCO) (“Cavco” or the “Company”) is
pleased to confirm that, further to the announcement of July 26,
2021, the Company completed the acquisition of the business and
certain assets and liabilities of The Commodore Corporation
(“Commodore”) effective on September 24, 2021. Commodore is the
largest independent builder of manufactured and modular housing in
the United States, operating under a variety of brand names and
with two wholly owned retail stores.
Bill Boor, Cavco President and Chief Executive
Officer, said, “We are excited to welcome the Commodore employees
to the Cavco family and look forward to building on the strong
reputation and success that Commodore has developed over their long
history.”
The purchase price totals $153 million, before
certain adjustments at and following closing of the transaction.
The acquisition is being funded with cash on hand.
About Cavco Cavco Industries,
Inc., headquartered in Phoenix, Arizona, designs and produces
factory-built housing products primarily distributed through a
network of independent and Company-owned retailers. The Company is
one of the largest producers of manufactured homes in the United
States, based on reported wholesale shipments, marketed under a
variety of brand names including Cavco, Fleetwood, Palm Harbor,
Fairmont, Friendship, Chariot Eagle and Destiny. The Company is
also a leading producer of park model RVs, vacation cabins and
systems-built commercial structures, as well as modular homes built
primarily under the Nationwide Homes brand. Cavco's finance
subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and
Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed
securities issuer that offers conforming mortgages, non-conforming
mortgages and home-only loans to purchasers of factory-built homes.
Our insurance subsidiary, Standard Casualty, provides property and
casualty insurance to owners of manufactured homes. Additional
information about Cavco can be found at www.cavco.com.
About CommodoreThe Commodore
Corporation and its different divisions have a history dating from
1952. They are the largest independent manufactured and
modular homebuilder in the United States, operating under a variety
of brand names including Commodore Homes of Pennsylvania, Commodore
Homes of Indiana, Colony Homes, MidCountry Homes, Pennwest Homes
and R-Anell Homes. Commodore has over 1,200 employees and operates
across the Northeast, Midwest and Mid-Atlantic regions, with wholly
owned retail stores in Indiana and New York. In addition to
manufacturing, Commodore also participates in commercial lending
operations with its dealers. Additional information about Commodore
can be found at www.commodorehomes.com.
Forward-Looking
StatementsCertain statements contained in this release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act
of 1934 and the Private Securities Litigation Reform Act of 1995.
In general, all statements that are not historical in nature are
forward-looking. Forward-looking statements are typically included,
for example, in discussions regarding the manufactured housing
industry; our financial performance and operating results; and the
expected effect of certain risks and uncertainties on our business,
financial condition and results of operations. All forward-looking
statements are subject to risks and uncertainties, many of which
are beyond our control. As a result, our actual results or
performance may differ materially from anticipated results or
performance. Factors that could cause such differences to occur
include, but are not limited to: the impact of local or national
emergencies including the COVID-19 pandemic, including such impacts
from state and federal regulatory action that restricts our ability
to operate our business in the ordinary course and impacts on (i)
customer demand and the availability of financing for our products,
(ii) our supply chain and the availability of raw materials for the
manufacture of our products, (iii) the availability of labor and
the health and safety of our workforce and (iv) our liquidity and
access to the capital markets; labor shortages and the pricing and
availability of raw materials; our ability to successfully
integrate past acquisitions or future acquisitions and the ability
to attain the anticipated benefits of such acquisitions;
involvement in vertically integrated lines of business, including
manufactured housing consumer finance, commercial finance and
insurance; information technology failures or cyber incidents; our
participation in certain financing programs for the purchase of our
products by industry distributors and consumers, which may expose
us to additional risk of credit loss; significant warranty and
construction defect claims; our contingent repurchase obligations
related to wholesale financing; a write-off of all or part of our
goodwill; our ability to maintain relationships with independent
distributors; our business and operations being concentrated in
certain geographic regions; governmental and regulatory disruption,
including prolonged delays by Congress and the President to approve
budgets or continuing appropriations resolutions to facilitate the
operation of the federal government; curtailment of available
financing from home-only lenders and increased lending regulations;
availability of wholesale financing and limited floor plan lenders;
market forces and housing demand fluctuations; the cyclical and
seasonal nature of our business; competition; general deterioration
in economic conditions and turmoil in the financial markets;
unfavorable zoning ordinances; extensive regulation affecting the
production and sale of manufactured housing; potential financial
impact on the Company from the subpoenas we received from the SEC
and its ongoing investigation, including the risk of potential
litigation or regulatory action, and costs and expenses arising
from the SEC subpoenas and investigation and the events described
in or covered by the SEC subpoenas and investigation, which include
the Company's indemnification obligations and insurance costs
regarding such matters, and potential reputational damage that the
Company may suffer; losses not covered by our director and officer
insurance, which may be large, adversely impacting financial
performance; loss of any of our executive officers; our ability to
generate income in the future; liquidity and ability to raise
capital may be limited; organizational document provisions delaying
or making a change in control more difficult; and volatility of
stock price; together with all of the other risks described in our
filings with the SEC. Readers are specifically referred to the Risk
Factors described in Item 1A of the Company’s Annual Report on Form
10-K for the year ended April 3, 2021 as may be amended from
time to time, which identify important risks that could cause
actual results to differ from those contained in the
forward-looking statements. Cavco expressly disclaims any
obligation to update any forward-looking statements contained in
this release, whether as a result of new information, future events
or otherwise. Investors should not place undue reliance on any such
forward-looking statements.
For additional information,
contact:
Mark FuslerDirector of
Financial Reporting and Investor RelationsPhone:
602-256-6263On the Internet: www.cavco.com
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