Cavco Industries signed a binding offer to acquire the business and certain assets and liabilities of The Commodore Corp., including its six manufacturing facilities and two wholly owned retail locations.
Commodore is the largest independent builder of manufactured and modular housing in the United States, operating under a variety of brand names, such as Commodore Homes of Pennsylvania, Commodore Homes of Indiana, Colony Homes, MidCountry Homes, Pennwest Homes and R-Anell Homes. The company has more than 1,200 employees and operates across the Northeast, Midwest and Mid-Atlantic regions, with wholly owned retail stores in Indiana and New York. In addition to manufacturing, Commodore participates in commercial lending operations with its dealers that Cavco will also acquire and will continue to manage the existing programs. For the last 12 months ended March 31, Commodore generated net sales of nearly $258 million and sold more than 6,600 modules, equating to more than 3,700 homes.
The purchase price totals $153 million, before certain adjustments that will be determined upon close of the transaction. The estimated cash outlay is $140 million after adjustments and including transaction fees. Cavco expects to fund the acquisition entirely with cash on hand.
“During the acquisition process, we have developed a tremendous respect for what has been accomplished at Commodore under Barry Shein’s leadership,” said Bill Boor, Cavco president and CEO. “Their reputation for quality, design, customer relationships and integrity is very consistent with Cavco’s philosophy and approach to doing business. We are extremely excited to work with the Commodore leadership and employees as we leverage best practices and technologies across the combined manufacturing network. Commodore’s market presence is a strategic extension of our current footprint, providing a platform for additional growth in the Northeast.”
