$23 Million deal adds to Champion's growing modular market share
Expands Champion's presence in the north central United States
AUBURN HILLS, Mich., March 31 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE: CHB), a leader in factory-built construction,
announced today that it has acquired Minnesota-based Highland Manufacturing
Company, LLC. The debt-free transaction is valued at $23 million in cash and
will be immediately accretive to Champion's results.
Highland Manufacturing, a leading regional manufacturer with a significant
presence in the north central United States, produces both manufactured and
modular homes from a single factory in Worthington, Minnesota. More than 60
percent of its current production is modular, representing its most
significant growth area over the past several years. Greg DeGroot will remain
president of Highland and join Champion's western region management team.
Highland's expected 2006 sales are approximately $32 million.
"This acquisition is another important step in furthering the strategy to
expand our modular market share. By acquiring Highland, we will increase our
manufacturing, distribution and builder / developer coverage in several key
states currently underserved by Champion," said William Griffiths, chairman,
president and CEO of Champion. "Highland has posted steady and consistent
sales and margin expansion over the past five years. Greg and the rest of the
Highland team have built an extremely well-run organization with an excellent
reputation and dedication to quality and service."
Highland Manufacturing has been a portfolio company of Minneapolis-based
private equity investment firm Norwest Equity Partners ("NEP") since April
2000. Steven Farsht, NEP partner and Highland board member said, "Joining
forces with Champion is a great fit for Highland and its management team.
Highland has made good progress growing its business through modular sales
while, at the same time, continuing to increase its HUD code market share."
"On behalf of our entire management team, we are excited to join the
Champion family," said DeGroot. "We will be able to leverage Champion's
national purchasing power and initiate their lean manufacturing program to
further enhance our operations."
About Champion
Champion Enterprises, headquartered in Auburn Hills, Mich., a leader in
factory-built construction, has produced more than 1.6 million homes through
its family of homebuilders since 1953. Today, Champion operates 33
manufacturing facilities in North America and partners with over 3,000
independent retailers, builders and developers. For more information, please
visit http://www.championhomes.com .
About Highland Manufacturing
Since 1986, Highland Manufacturing has been producing high-quality modular
and manufactured homes. Today, Highland, recognized as a premier builder of
quality homes, offers homes in Colorado, Kansas, Iowa, Minnesota, Montana,
Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming. For more
information, please visit http://www.highlandmanufacturing.com .
About Norwest Equity Partners
Norwest Equity Partners (NEP) focuses on providing profitable and growing
middle market companies with $20 million - $80 million equity investments
primarily through management buyouts, recapitalizations, and growth
financings. Since NEP's founding in 1961, it has earned a reputation as one
of the premier private equity investment firms in the United States.
Currently, NEP has in excess of $3 billion in capital under management and
offices located in Minneapolis and Los Angeles. For more information, please
visit http://www.nep.com .
Forward-Looking Statements
This news release contains certain statements, including statements
regarding accretion, sales, market coverage and the financial position of both
Champion and Highland, which could be construed to be forward-looking
statements within the meaning of the Securities and 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 SEC
filings, 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.highlandmanufacturing.com http://www.nep.com
Company News On-Call:
http://www.prnewswire.com/comp/110861.html
CONTACT:
Investor Contact: Lisa D. Lettieri, Vice
President of Investor Relations of Champion Enterprises,
+1-248-340-7731, llettieri@championhomes.net ; or Media: Tim
Hanson or Paul Kesman of Identity Investor Relations,
+1-248-258-2333, chb@identitypr.com
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