Champion Enterprises, Inc. Announces Agreement to Acquire Nine Retail Home Centers
AUBURN HILLS, Mich., Dec. 10 /PRNewswire/ -- Champion Enterprises, Inc. (NYSE: CHB - news) today announced the signing of a definitive agreement to acquire the nine retail home centers of Heartland Homes Group, headquartered in Forney, Texas. The transaction is expected to be completed in January 1999 pending government clearance and other conditions. Terms of the acquisition were not disclosed. Heartland Homes reported 1997 sales of approximately $30 million and, in addition to Forney, has home centers in Rockwall, Mesquite, Tyler, Nacogdoches, Lufkin, and Texarkana.
Mark Cole, Champion's President, Retail Operations, commented, ''Chuck Raleigh and the management team of Heartland Homes have been successful in growing the company rapidly and profitably since it started in 1993. He and his group are great managers and entrepreneurs who we are proud to have associated with Champion.''
Chuck Raleigh, President of Heartland Homes, said, ''We are delighted to become part of the leading company in the industry. Champion's decentralized and entrepreneurial style of management attracted us to the organization and the people. We expect to continue to grow and thrive as part of the Champion family. By affiliating with Champion, we will be part of an organization that should continue to lead the industry and help to mold and shape its future.''
Cole concluded, ''These acquisitions represent another step in establishing Champion as the nation's leading housing manufacturer and retailer. We have brought to our organization some of the best housing retailers in the nation. Retail performance to date has been excellent and demonstrates the incremental effect of retail profits on overall margins. Retail sales are expected to exceed $1 billion by the year 2000. As our organization grows and expands, shareholders should see continued benefits.''
Champion also recently announced the signing of a definitive agreement to acquire Homes of Merit, Inc., Florida's leading manufacturer of homes. Homes of Merit reported 1997 sales of more than $120 million from six manufacturing facilities and its homes are sold through 275 independent retailers. The acquisition is expected to close in January 1999 pending governmental clearance.
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is the nation's #1 company in the manufactured housing industry and since inception has produced more than 1.3 million homes. Champion is also the third largest manufactured housing retailer in the country and, upon completion of the acquisition announced today, should have more than 250 home centers in 25 states. In addition, its homes are sold by 3,500 independent retail locations. 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. |
