PHOENIX, September 27, 2021 (GLOBE NEWSWIRE) – Cavco Industries, Inc. (Nasdaq: CVCO) (“Cavco” or the “Company”) is pleased to confirm that, following the announcement of July 26, 2021, the La Company completed the acquisition of the business and certain assets and liabilities of The Commodore Corporation (“Commodore”) effective September 24, 2021. Commodore is the largest independent builder of prefabricated and modular housing in the United States. United, operating under a variety of brand names and with two wholly owned retail stores.
Bill Boor, President and CEO of Cavco, said: “We are delighted to welcome Commodore employees to the Cavco family and look forward to building on the strong reputation and success that Commodore has built over the years. its long history. “
The purchase price totals $ 153 million, before and after certain adjustments at closing. The acquisition is funded by cash.
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and manufactures prefabricated housing products primarily distributed through a network of independent and company-owned retailers. The Company is one of the largest manufacturers of manufactured homes in the United States, based on reported wholesale shipments, marketed under various brands including Cavco, Fleetwood, Palm Harbor, Fairmont, Friendship, Chariot Eagle and Destiny. The Company is also a leading producer of model recreation park vehicles, vacation cottages and system-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Cavco’s financial affiliate, CountryPlace Mortgage, is a Fannie Mae and Freddie Mac Authorized Seller / Server and Ginnie Mae Mortgage Backed Securities Issuer that offers Compliant Mortgages, Non-Compliant Mortgages, and Home Loans Only. buyers of prefabricated homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at www.cavco.com.
The Commodore Corporation and its various divisions have a history dating back to 1952. They are the largest independent builder of manufactured and modular homes in the United States, operating under various brands including Commodore Homes of Pennsylvania, Commodore Homes of Indiana, Colony Homes, MidCountry Homes, Pennwest Homes, and R-Anell Homes. Commodore has more than 1,200 employees and operates in the Northeast, Midwest and Mid-Atlantic regions, with wholly-owned retail stores in Indiana and New York. In addition to manufacturing, Commodore also participates in commercial lending transactions with its dealers. Additional information on Commodore can be found at www.commodorehomes.com.
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are generally included, for example, in discussions regarding the manufactured home industry; our financial performance and operating results; and the expected effect of certain risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. Therefore, our actual results or performance may differ materially from the anticipated results or performance. Factors that could cause such differences include, but are not limited to: the impact of local or national emergencies, including the COVID-19 pandemic, including the impacts of state and federal regulatory measures that limit our ability to operate our business in the ordinary course and impacts on (i) customer demand and the availability of financing for our products, (ii) our supply chain and the availability of raw materials for the manufacture of our products, (iii) the availability of labor and the health and safety of our labor force and (iv) our liquidity and access to capital markets; labor shortages and the price and availability of raw materials; our ability to successfully integrate past or future acquisitions and the ability to obtain the expected benefits of such acquisitions; participation in vertically integrated business lines, including the financing of the consumption of prefabricated housing, trade finance and insurance; information technology failures or cyber incidents; our participation in certain financing programs for the purchase of our products by industry distributors and consumers, which may expose us to additional risk of loss of credit; major claims for warranty and construction defects; our contingent repurchase obligations related to wholesale funding; a write-off of all or part of our business; our ability to maintain relationships with independent distributors; our activities and operations being concentrated in certain geographic regions; government and regulatory disruptions, including prolonged delays by Congress and the President in approving budgets or pursuing supply resolutions to facilitate the functioning of the federal government; reducing funding available from residential lenders and increasing lending regulations; availability of wholesale financing and limited floor plan lenders; market forces and fluctuations in demand for housing; the cyclical and seasonal nature of our business; competetion; general deterioration of economic conditions and turmoil in financial markets; unfavorable zoning ordinances; extensive regulations affecting the production and sale of prefabricated housing; potential financial impact on the Company from subpoenas we have received from the SEC and its ongoing investigation, including the risk of potential litigation or regulatory action, and the costs and expenses arising from subpoenas and the SEC investigation and events described or covered by the SEC subpoenas and investigations, which include the Company’s indemnification obligations and insurance costs relating to such matters, and the potential damage to reputation that the Company could suffer; losses not covered by our directors and officers insurance, which can be significant and have a negative impact on financial performance; the loss of one of our executive officers; our ability to generate income in the future; liquidity and the ability to raise capital may be limited; provisions of organizational documents delaying or making more difficult a change of control; and the volatility of stock prices; as well as all other risks described in our filings with the SEC. Readers are specifically referred to the risk factors described in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended April 3, 2021, as may be amended from time to time, which identify the significant risks that could cause actual results to differ. those contained in forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise. Investors should not place undue reliance on these forward-looking statements.
For more information, contact:
Director of Financial Information and Investor Relations
On the Internet: www.cavco.com