Monday, January 8, 2018

Skyline - Champion Update


Under the deal, Elkhart, Ind.-based Skyline (NYSE American: SKY) will issue approximately 47.8 million shares worth $621.4 million before the deal to Champion's current owners. Champion and its subsidiaries, Champion Home Builders Inc. and CHB International BV, become part of Skyline. The resulting combined company, Skyline Champion Corp. (NYSE: SKY), will be headquartered in Elkhart but keep its presence in Troy, the companies announced Friday in a news release. Messages were left with Champion Home Builders seeking comment. The companies had combined revenue of approximately $1 billion for the past fiscal year ending in August/September, according to the release. They'll operate 36 manufacturing centers in North America to create factory-built, modular and park model houses, and commercial facilities. The combined entity also operates 21 factory-direct retail locations and 10 logistics hubs across the U.S. In the wake of the purchase, Skyline Champion will aim to save on overhead costs and improve operations, but no details were provided on potential staffing or facility changes. Champion's CEO, Keith Anderson, will become CEO of Skyline Champion after the transaction is finalized — likely in the first six months of 2018, after approvals, according to the release. Laurie Hough, Champion's chief financial officer, will become the new company's CFO. The board of directors will comprise nine nominated by Champion and two by Skyline. Skyline plans to nominate the chairman of its board, John Firth, and its current CEO, Rich Florea, as directors.

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