Champion Enterprises, Inc. Announces Agreement to Acquire Homes America Retail Group
AUBURN HILLS, Mich., March 30 /PRNewswire/ -- Champion Enterprises, Inc. (NYSE: CHB - news) announced today the definitive agreement to acquire the 25 retail housing sales centers of Homes America. The sales centers are located in Arizona, California, Idaho, Nevada, Oregon, Oklahoma, Utah and Wyoming, and generated 1997 sales of approximately $65 million. Terms of the purchase were not disclosed. The acquisitions are expected to close by the beginning of May.
Chairman, President and Chief Executive Officer Walter R. Young, Jr. said in making today's announcement, ''Gene Whitworth, the majority owner of Homes America, operates one of the fastest growing and most profitable group of retail centers in the United States. We are delighted to have Gene and his retailers join the Champion retail family. We are in the process of putting together the best group of managers and sales centers in the country. So far in 1998, we have announced six acquisitions. Champion's current annual retail base now totals approximately $430 million in sales and 141 retail sales centers. We will continue to acquire and expand our retail group to reach our goal of $1 billion in retail sales by the year 2000.''
Homes America is comprised of nine companies. They include: Whitworth Management, Inc.; Factory Homes Outlet, Inc.; USA Mobile Homes, Inc.; Homes America of Utah, Inc.; Homes America of California, Inc.; Homes America of Oklahoma, Inc.; Homes America of Arizona, Inc.; American Transport, Inc.; and Homes America Finance, Inc.
Commenting on the announcement, Gene Whitworth said, ''The housing industry is changing overnight with site builders and manufacturers coming together faster than anyone ever imagined. As our industry continues to change, I am pleased to be aligned with Champion, the industry leader. Their decentralized organization emphasizes and rewards entrepreneurial talent. They have the wherewithal to continue to broaden the consumer market for our homes and to expand the industry. We plan to grow and prosper with Champion.''
''While we are creating a new retail organization at a fast pace, we are focused on our goal of maximizing share value,'' said Joseph H. Stegmayer, President, Retail Operations. ''We expect acquisitions to be accretive within 12 months and are mindful of maintaining above average returns on investment. Our purchase prices reflect long-term earnouts for the owners and key management, so that all of us have the same agendas. Our long-term goal of a minimum 15 percent compound annual growth in earnings per share is foremost in evaluating acquisition opportunities.'' |
