Home Builders Announce Skyline Champion Corporation

Skyline Champion Corporation

Skyline Champion Corporation Becomes Nation’s Largest Public Factory Home Builder

Skyline Corporation and Champion Enterprises Holdings, LLC, the parent company of Champion Home Builders, announced the closing of their previous operation to form Skyline Champion Corporation.

The combined company will operate as Skyline Champion Corporation and its common stock will trade on the New York Stock Exchange under the ticker symbol “SKY”. The ticker symbol is the same symbol under which Skyline previously traded.

Skyline Champion Corporation

Skyline Champion Corporation
Courtesy Skyline Champion Overview

Company headquarters will remain in Elkhart, Ind., where Skyline is based, with continued operation from Troy, Mich., where Champion has had central operations. The new company’s combined market share reaches 18 percent, with combined annual net sales exceeding $1.3 billion.

Skyline Champion gains an advantageous platform to support the production of manufactured and modular homes, park-model RVs and modular buildings for the multi-family, hospitality, senior and workforce housing sectors.

“We are very excited to close the transaction and look forward to operating as Skyline Champion Corporation,” said Keith Anderson, Skyline Champion’s chief executive officer. “Skyline Champion is now the largest independent publicly traded factory-built housing company in the United States with combined revenue of more than $1.3 billion. The increased size and scale, coupled with a strong balance sheet and significant cash flow generation capability, has us well positioned to execute our long term growth strategy.

“There is a tremendous opportunity for Skyline Champion to take advantage of the attractive market dynamics in the industry given our broader geographic footprint across North America and our enhanced product offering,” Anderson said. “We will remain committed to providing quality products and outstanding customer service as we focus on executing our strategy on our newly enhanced platform.”

What the Formation of Skyline Champion Corporation Will Do

Anderson said the new organization anticipates taking advantage of efficiencies that result from the merger, to the tune of about $10 to $15 million. These efficiencies primarily are driven by direct cost savings, reduced overhead costs and operational improvement opportunities. The company also will target synergies through cross-selling and distribution optimization through the combined company’s owned and independent dealer network.

“The complementary cultures and shared values of our legacy businesses are evident in the deep commitment to providing solutions to customers and delivering a broad range of quality products and value-added services,” Anderson said. “I am confident that this will translate into future success of Skyline Champion.”

In conjunction with the closing of the transaction, Skyline issued approximately 47.8 million shares to Champion, representing 84.5 percent of the common stock of the combined company on a fully-diluted basis.

Champion Skyline Corporation
Champion Topeka Displayed a New Model Home at The Louisville Show in January.

Also, Skyline paid a special cash dividend on May 31 of $0.62381 per share on the company’s common stock to Skyline’s shareholders of record at the close of business on May 25, 2018.

Jefferies LLC served as financial advisor to Skyline. Barnes & Thornburg LLP acted as Skyline’s legal counsel. Ice Miller LLP acted as legal counsel to Skyline’s Special Committee of the Board. RBC Capital Markets, LLC served as financial advisor to Champion, and Ropes & Gray LLP acted as Champion’s legal counsel. Taft Stettinius & Hollister LLP acted as Indiana legal counsel to Champion.

About Skyline Champion Corporation

Skyline Champion Corporation (NYSE: SKY) formed in June of 2018 as the result of the combination of Skyline Corporation and the operating assets of Champion Enterprises Holdings, LLC. The combined company employs more than 6,800 people and is the largest independent factory-built housing company in North America. With more than 65 years of homebuilding experience and 36 manufacturing facilities throughout the United States and western Canada, Skyline Champion is well positioned with a leading portfolio of manufactured and modular homes, park-models and modular buildings for the multi-family, hospitality, senior and workforce housing sectors.

In addition to its core home building business, Skyline Champion operates a factory-direct retail business, Titan Factory Direct, with 21 retail locations spanning the southern United States, and Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from 10 dispatch locations across the United States.

Skyline Champion builds homes under some of the most well know brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.