Skyline Corp. and Champion Enterprises Holdings, recently announced that they will combine their operations. Under the terms of the agreement, Champion will contribute 100 percent of the shares of its operating subsidiaries, Champion Home Builders and CHB International B.V., to Skyline.
In exchange, Skyline is currently expected to issue approximately 47.8 million shares to Champion, representing 84.5 percent of the common stock of the combined company on a fully-diluted basis. Prior to closing, Skyline expects to declare a dividend to its existing shareholders of its excess net cash available for distribution under the agreement after certain transactional expenses.
The combined company will be known as Skyline Champion Corp., and trade on the NYSE American under the ticker symbol “SKY.”
The board of directors will comprise eleven members, nine of which will be directors designated by Champion and two of which will be designated by Skyline. Upon closing of the transaction, Champion CEO Keith Anderson will serve as CEO of Skyline Champion Corp.
The business combination will create the nation’s largest publicly traded factory-built housing company, with greater than $1 billion in pro forma revenue over the past twelve months. The combined company will have an expansive operational footprint throughout North America, with 36 manufacturing facilities, 24 of which are in the top 20 states for manufactured housing shipments.
The transaction, which is expected to be completed in the first half of 2018, is subject to the receipt of regulatory approvals and other customary closing conditions, as well as the approval of Skyline shareholders.
