Champion Home Builders and Champion Retail Housing, subsidiaries of Skyline Champion Corp., announced a definitive agreement to acquire Regional Enterprises LLC and related companies – known collectively as Regional Homes.
Regional Homes is the fourth largest HUD manufacturer in the United States and operates three manufacturing facilities in Alabama and 43 retail sales centers across the Southeast. They sold approximately 5,000 new homes and had estimated revenue of approximately $523 million for the year ended Dec. 31, 2022, and generated estimated EBITDA of approximately $84 million for the same period.
“We are excited to welcome Regional Homes and its 1,200 employees to the Skyline Champion family,” said Mark Yost, Skyline Champion’s president and CEO. “We believe Regional Homes is an excellent fit given their customer-centric selling approach which goes hand-in-hand with our ongoing efforts to enhance our customers’ buying experience. The transaction is expected to accomplish several objectives within our strategic framework for profitable growth. Notably, Regional Homes’ strong presence in the large markets of Alabama and Mississippi helps expand our captive retail and manufacturing distribution in that region. We expect this transaction to generate solid returns over time with meaningful stakeholder value creation from day one, supported by Regional Homes’ attractive margin profile, its talented team, as well as available synergy capture.”
The purchase price will be approximately $328 million plus assumed debt, primarily related to inventory floor plan liabilities, of $130 million.
