Cavco to Pay $93M for Manufactured Home Builder Solitaire Homes, Expanding National Presence
Phoenix-based manufactured home builder Cavco Industries, Inc is expanding its national footprint with yet another acquisition, agreeing to purchase Solitaire Homes Inc. of Oklahoma at a purchase price of $93 million.
Solitaire Homes. Inc. is an Oklahoma-based builder of manufactured homes with building facilities in Oklahoma, New Mexico, and Texas, 22 retail locations, and 950 employees.
Cavco Industries, in reporting fiscal second-quarter results discusses the planned acquisition of Solitaire Homes and provides further business updates.
The following are excerpts from that report.
Phoenix, Nov. 03, 2022 (Globe Newswire) – Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the second quarter that ended October 2, 2022, provided a further discussion on the planned acquisition of Solitaire Homes, Inc, and provided updates on other business items.
Commenting on the quarter, President and Chief Executive Officer Bill Boor said, “Our teams across the company continue to achieve outstanding results even as market conditions are shifting. Near-term demand is being impacted by rising interest rates, inflation, and other economic factors. However, there are opportunities for manufactured housing in this market environment, and the current dynamics do not change the massive affordable housing deficit. We are fully prepared to maneuver through the market transition while staying focused on that long-term need for our homes.”
He continued, “The recent start-ups of the Hamlet and Glendale plants and the addition of Solitaire Homes are right in line with our strategy to grow our impact on the affordable housing problem. Since the beginning of fiscal 2022, we have committed $244 million to strategic acquisitions, $52 million to internal capital projects, including Hamlet and Glendale, and $99 million to share repurchases. After the commitment of cash to the Solitaire deal, we still have well over $200 million in cash, providing ongoing flexibility.
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under a variety of brand names, including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, and Mid-Country. We are also a leading producer of park model RVs, vacation cabins, and factory-built commercial structures. Cavco’s finance subsidiary, Ginnie Mae, a mortgage-backed securities issuer, offers conforming mortgages, non-conforming mortgages, and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.