Cavco’s Planned $153 Million Acquisition of Commodore, The Largest Independent Producer of Manufactured Housing in the U.S.
According to multiple news reports, Cavco Industries, Inc, headquartered in Phoenix, Arizona, one of the largest producers of manufactured homes in the U.S. has announced a $153 million binding agreement to purchase The Commodore Corp; the largest independent builder of modular and manufactured housing in the U.S.
The Commodore Corporation and its different divisions have a long history dating from 1952, 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. Commodore has over 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 also participates in commercial lending operations with its dealers that Cavco will acquire and continue the existing programs for the last 12 months ended March 31, 2021, Commodore generated net sales of approximately 258 million and sold over 6,600 modules (floor sections), equating to over 3,700 homes
The addition of Commodore will expand Cavco’s geographic reach into the Northeast United States while enhancing its presence in the Midwest and Mid-Atlantic markets.
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.
Bill Boor, Cavco President, and Chief Executive Officer said, “During the acquisition process, we have developed a tremendous respect for what has been accomplished at Commodore under Barry Shein’s leadership. 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.”
Cavco Industries, Inc; headquartered in Phoenix, Arizona, designs, and produces factory-built housing primarily distributed through a network of independent and Company-owned retailers. The Company is one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names including CAVCO, Fleetwood, Palm Harbor, Fairmont, Friendship, Chariot Eagle, and Destiny. The Company is also a leading producer of park model RVs, vacation cabins, and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Cavco’s finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages, and home-only loans to purchasers of factory-built homes. The Company 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