Champion Enterprises Announces Acquisition of North American Housing
$32 Million Acquisition of North American Adds to Champion's Growing Modular Market Share
AUBURN HILLS, Mich., Aug 01, 2006
Champion Enterprises, Inc., a leader in factory-built construction, announced today that it has completed the acquisition of Maryland-based North American Housing. The debt-free transaction is valued at $32 million in cash and will be immediately accretive to Champion's results.
North American Housing, a leading regional manufacturer with a significant presence in the Virginia-Maryland-Washington DC market area, produces modular homes from two factories in Virginia. North American sells its modular homes through a well-entrenched builder distribution network and has been in business for over 30 years. Carl Benna, North American's president, will remain in this position after joining Champion's family of homebuilders. North American's expected 2006 sales are approximately $30 million.
"This acquisition is another important step in furthering the strategy to expand our modular market share. By acquiring North American, we will increase our manufacturing, distribution and builder/developer coverage in several key states. In addition, by acquiring one of the modular industry's best, we are excited at the prospect of benefiting from the integration of North American's disciplined, well managed and high performance business model," said William Griffiths, chairman, president and CEO of Champion. "North American has posted steady and consistent sales and margin expansion over the past five years, with operating margins well in excess of Champion's averages. Carl and the rest of the North American team have built an extremely well-run organization with an excellent reputation and dedication to quality and service."
About Champion
Champion Enterprises, headquartered in Auburn Hills, Mich., a leader in factory-built construction, has produced more than 1.6 million homes through its family of homebuilders since 1953. Today, Champion operates 37 manufacturing facilities in North America and the United Kingdom and partners with over 3,000 independent retailers, builders and developers. For more information, please visit http://www.championhomes.com .
Forward-Looking Statements
This news release contains certain statements, including statements regarding accretion, personnel, sales, market coverage and the financial position of both Champion and North American, which could be construed to be forward-looking statements within the meaning of the Securities and Exchange Act of 1934.
These statements reflect the Company's views with respect to future plans, events and financial performance. The Company does not undertake any obligation to update the information contained herein, which speaks only as of the date of this press release.
The Company has identified certain risk factors, which could cause actual results and plans to differ substantially from those included in the forward-looking statements.
These factors are discussed in the Company's most recently filed Form 10-K and other SEC filings, in each case under the section entitled "Forward-Looking Statements," and those discussions regarding risk factors are incorporated herein by reference
