The deal for Regional Homes, a builder with three manufacturing facilities in Alabama and 43 retail centers across the southeast, has been finalized by Skyline Champion Corporation for approximately $313 million.
“We are excited to announce the closing and to welcome Regional Homes to the Skyline Champion family,” Skyline Champion Corporation President and CEO Mark Yost said. “We believe Regional Homes is an excellent strategic fit given their customer-centric selling approach which goes together with our ongoing 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.”
Regional Homes expands Skyline Champion’s presence in the South. Headquartered in Flowood, Miss., Regional Homes employs 1,200 people. Since its founding in 2006, Regional Homes has sold more than 30,000 manufactured homes and provided professional services including site preparation, installation, furnishing, and maintenance. It built about 5,000 new homes and had estimated revenue of $523 million in its last full year.
Heath Jenkins, the owner of Regional Homes, said Champion’s goals and operating style are an ideal fit for the company.
“This transaction provides a significant opportunity to make a positive impact for our customers and employees,” Jenkins said. “The team at Skyline Champion has been able to witness the unique culture we have developed at Regional Homes firsthand. Their leadership has shown tremendous support in our abilities, but most of all, our people — who are what make this company so special.
“I’m confident that with these alliances, we are on the path to something great,” he said.
Skyline Champion, the second-largest builder in the industry and the largest public company among its competitors, recently announced a partnership with ECN Capital Corporation to extend the company’s access to capital through a $1.14 billion merger with Triad Financial.
The purchase price was approximately $313 million, net of cash acquired, plus assumed debt, 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.
