Simultaneous Leasing of Additional Facilities Enhances International
Segment's Future Growth Potential
TROY, Mich., March 10 /PRNewswire-FirstCall/ -- Champion Enterprises,
Inc. (NYSE: CHB), a leader in factory-built construction, announced today
that it has expanded its international segment through the acquisition of
United Kingdom-based ModularUK Building Systems Limited ("ModularUK"), a
steel-framed modular manufacturer, for a nominal initial cash payment and
the assumption of approximately $4 million of debt. In connection with the
acquisition, it has entered into a lease agreement for three additional
buildings near Driffield, East Yorkshire, approximately 60 miles northeast
of Champion's existing U.K. operations.
ModularUK, which recorded revenues of approximately $24 million in
2007, produces and installs steel-framed modular buildings serving clients
in the healthcare, education and commercial sectors throughout the United
Kingdom. While ModularUK currently operates leased manufacturing facilities
located in East Yorkshire, the business will be relocated to the new
Driffield site upon completion of leasehold improvements, occupying one of
the three new buildings. The two remaining buildings, upon completion, will
provide approximately 25 percent additional manufacturing capacity for the
company's current Caledonian operations. The new Driffield site is expected
to be fully operational later this year.
"ModularUK brings to Champion not only strong, profitable current
operations but additional management depth and much needed manufacturing
capacity to continue to grow and expand our U.K. operations. In addition,
entry into the modular healthcare and education construction sectors will
help fuel the future growth of our international segment and the continued
diversification of Champion," stated William Griffiths, chairman, president
and chief executive officer of Champion Enterprises, Inc. "We are proud to
have the ModularUK team join with Caledonian's management in leading our
growing business abroad."
About Champion
Troy, Michigan-based Champion Enterprises, Inc., a leader in
factory-built construction, operates 35 manufacturing facilities in North
America and the United Kingdom working with independent retailers, builders
and developers. The Champion family of builders produces manufactured and
modular homes, as well as modular buildings for government and commercial
applications. For more information, please visit http://www.championhomes.com.
About ModularUK
ModularUK designs, produces and installs steel-framed modular and
volumetric buildings serving clients in the healthcare, education and
commercial sectors throughout the United Kingdom. Today, ModularUK operates
two manufacturing facilities in East Yorkshire, England. For more
information, please visit http://www.modularuk.com.
Forward-Looking Statements
This news release contains certain statements, including statements
regarding profitable operations, factory conversions, and future growth and
diversification, each of which could be construed to be forward-looking
statements within the meaning of the Securities Exchange Act of 1934.
These statements reflect the Company's views with respect to future
plans, events and financial performance. The Company does not undertake any
obligation to update the information contained herein, which speaks only as
of the date of this press release. The Company has identified certain risk
factors which could cause actual results and plans to differ substantially
from those included in the forward-looking statements. These factors are
discussed in the Company's most recently filed Form 10-K and other filings
with the Securities and Exchange Commission, in each case under the section
entitled "Forward-Looking Statements," and those discussions regarding risk
factors are incorporated herein by reference.
SOURCE Champion Enterprises, Inc.
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Related links:
http://www.championhomes.com
http://www.modularuk.com
http://www.prnewswire.com/comp/110861.html /
CONTACT:
Investors: Laurie Van Raemdonck, Vice
President, Investor Relations, +1-248-614-8267,
lvanraemdonck@championhomes.net, or Media: Christine Fisher,
pushtwentytwo, +1-248-335-9500 ext. 30,
cfisher@pushtwentytwo.com, for Champion Enterprises, Inc.
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