Champion Enterprises, Inc. Announces Agreement To Acquire Homes of Merit, Inc.
AUBURN HILLS, Mich., Nov. 20 /PRNewswire/ --- Champion Enterprises, Inc. (NYSE: CHB - news) today announced the signing of a definitive agreement to acquire Homes of Merit, Inc., a manufactured home producer based in Florida. Homes of Merit operates six home building facilities and reported sales of over $120 million in 1997. The acquisition is expected to be completed in January 1999 subject to government clearance and other conditions. Terms of the transaction were not disclosed.
Champion Chairman, President and Chief Executive Officer, Walter R. Young, Jr., said, ''Homes of Merit provides a major market opportunity for Champion, which has only a minor presence in Florida. Homes of Merit is the production leader in manufactured housing in the state, deriving approximately 80 percent of their sales from Florida alone. They produce mid- to high-end homes of outstanding quality with an average wholesale price of $31,625.''
Homes of Merit has been in operation for 25 years and is ranked the 16th largest housing manufacturer in the country. Its homes are distributed through 275 independent retailers in the Southeastern U.S. Almost 90 percent of the homes they produce are multisection.
Homes of Merit founder and President, Chuck Weeder, added, ''I have been watching Champion grow over the last several years and have been impressed by their decentralized, entrepreneurial organization. Being the #1 manufactured housing company in Florida, it seemed fitting that we become affiliated with the #1 manufactured housing company in the nation. We chose Champion because they have the credibility, momentum and vision to continue to lead the industry. The culture and style of our organizations are similar and a good fit.''
Young continued, ''I am delighted to have Chuck Weeder and his organization join our Champion family. Chuck is a legend in the industry and brings with him a strong, experienced management team. Homes of Merit has an excellent reputation in the industry for quality and integrity. Their product line is an outstanding addition to our more than 60 brands. We look forward to having Homes of Merit continue to operate in the tradition for which they have become known and admired.''
Homes of Merit will become part of Champion's Eastern Region, reporting to its President, B.J. Williams. Four regional presidents oversee Champion's manufacturing operations and report to Chief Operating Officer, Philip C. Surles. Upon the completion of this acquisition, Champion will have 64 home building facilities in the U.S. and two in western Canada.
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is the #1 company in the manufactured housing industry. Champion is also the third largest manufactured housing retailer in the nation with 233 home centers in 24 states. In addition, its homes are sold by 3,500 independent retail locations. Since its inception, Champion has produced more than 1.3 million homes. For the nine months ended October 3, 1998, net sales increased 33 percent to $1.7 billion and income from continuing operations rose 38 percent to $1.45 per diluted share. |
