Cavco Industries Announces Planned Acquisition of Manufactured Home Builder and Retailer, American Homestar Corporation

PHOENIX, ARIZ, July 14,2025 GLOBE NEWSWIRE– Cavco Industries, Inc. (NASDAQ CVCO) announced today that it has entered into a definitive agreement to acquire “American Homestar Corporation and its subsidiaries (collectively,  “American Homestar”), a Houston-based company best known in the market as Oak Creek Homes. American Homestar operates two manufacturing facilities, nineteen retail locations, writes and sells a limited number of manufactured home loans and acts as an agent for third party insurers. With 800 employees, revenues for the twelve months ended May 31, 2025 were $194 million, net income was $16.6 million and earnings before interest, taxes, depreciation, amortization, and other income   (“Adjusted EBITDA”) (non-GAAP”) was $17.8 million. During that time, American Homestar produced 1,676 homes.

Cavco will acquire American Homestar for $190 million in cash, subject to customary purchase price adjustments. The acquisition is intended to be funded entirely from the Company”s cash on hand and is expected to close in the Company’s third quarter of fiscal year 2026, subject to applicable regulatory approvals and the satisfaction of certain customary closing conditions.

Highlights of the proposed transaction:

• Financial Impact:  Cavco expects this proposed acquisition to be accretive to earnings and cash flow from operations.
• Potential for operational and cost synergies: In addition to implementation of shared best practices, the acquisition provides the opportunity for meaningful cost, purchasing and product optimization synergies.
• Strengthens Cavco’s Position in the South-Central U.S.: Expands Cavco’s presence across Texas and surrounding states, one of the country’s most important manufactured housing.
• Capital Allocation: Following the strategic deployment of existing cash, Cavco will still maintain a significant cash position available for continued strategic investment.