Walter Industries Subsidiary Acquires Modular Homebuilder Crestline Homes
Acquisition Will Add Approximately 900 Homes Annually
Marks Entry Into Niche Segment of Homebuilding Industry
TAMPA, Fla., March 12 /PRNewswire/ -- Walter Industries, Inc. (NYSE: WLT - news) announced today that its homebuilding and financing subsidiary, Jim Walter Homes, Inc., has acquired Crestline Homes, Inc., a North Carolina-based builder of ''modular'' homes, in an all cash transaction. The purchase price was not disclosed.
Headquartered in Laurinburg, North Carolina, Crestline is the sixth largest builder of modular homes in the United States. In its most recent year ended February 28, 1999, Crestline built approximately 880 homes, generating revenues of $43 million from its sales to independent retail distributors and homebuilders.
''This acquisition signals an exciting new direction for Jim Walter Homes, one which couples our 53-year history of traditional, stick-built homebuilding with the efficiencies offered by modular production systems,'' said Kenneth E. Hyatt, Walter Industries Chairman and Chief Executive Officer.
Modular homes are constructed in sections which are transported to a home site and assembled by a licensed builder to form a traditional, single-family home. They are designed, engineered and built in a factory-controlled environment for greater quality control and to mitigate the effects of variable weather conditions and labor shortages. Modular homes are constructed to conform with the same state, county and specific local building codes applicable to traditional site-built homes, unlike ''manufactured,'' or mobile homes, which are often restricted by building or zoning regulations.
Crestline produces 40 home models ranging in size from 1,100 square feet to 3,000 square feet from two manufacturing plants in Laurinburg. Styles range from one-story ranch homes to Cape Cod and larger two-story models. Its homes are sold directly to a network of 60 independent retailers and general contractors serving North Carolina, South Carolina, Georgia, Tennessee and Virginia. These distributors market the homes to the homebuyer and are responsible for on-site assembly.
''We place high value on Crestline's established retailer base and are dedicated to preserving and enhancing these long-standing relationships,'' Hyatt said. ''We also see opportunities to expand Crestline's market penetration into areas not currently served by its distributor network by capitalizing on Jim Walter Homes' retail expertise and extensive network of model display parks. We believe this can be a potent combination which will provide numerous opportunities for leveraging the strengths of both organizations.''
Jim Walter Homes is the nation's leading ''on-your-lot'' builder and the thirteenth largest builder of detached, single-family homes overall. It offers more than 30 home designs which it markets through 122 model display parks and sales offices in 19 states, serving customers in 22 Sunbelt and surrounding states. The company has built more than 330,000 homes since its inception in 1946. In its last fiscal year, Jim Walter Homes and its affiliated companies built 3,700 single-family detached homes on customer- owned property. Jim Walter Homes also finances 96% of the homes it builds and currently maintains a $4.2 billion mortgage portfolio.
As a subsidiary of Jim Walter Homes, Crestline will retain its brand name identity and product line and will continue to operate under the leadership of its President and founder, Joe D. Manis. Mr. Manis, 53, has also been named a Senior Vice President of Jim Walter Homes.
''Joe Manis' leadership and expertise in the modular home industry is well known and has been a key factor in Crestline's growth from a single-plant operation with 175 home completions in 1984 to a two-plant operation with nearly 900 home completions in 1998,'' said Robert W. Michael, Jim Walter Homes' President and Chief Operating Officer. ''We look forward to combining our resources to provide both companies with new and exciting opportunities for continued sales and earnings growth.'' |
