$32 Million Acquisition of North American Adds to Champion's Growing
Modular Market Share
AUBURN HILLS, Mich., Aug. 1 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE: CHB), a leader in factory-built construction,
announced today that it has completed the acquisition of Maryland-based
North American Housing. The debt-free transaction is valued at $32 million
in cash and will be immediately accretive to Champion's results.
North American Housing, a leading regional manufacturer with a
significant presence in the Virginia-Maryland-Washington DC market area,
produces modular homes from two factories in Virginia. North American sells
its modular homes through a well-entrenched builder distribution network
and has been in business for over 30 years. Carl Benna, North American's
president, will remain in this position after joining Champion's family of
homebuilders. North American's expected 2006 sales are approximately $30
million.
"This acquisition is another important step in furthering the strategy
to expand our modular market share. By acquiring North American, we will
increase our manufacturing, distribution and builder/developer coverage in
several key states. In addition, by acquiring one of the modular industry's
best, we are excited at the prospect of benefiting from the integration of
North American's disciplined, well managed and high performance business
model," said William Griffiths, chairman, president and CEO of Champion.
"North American has posted steady and consistent sales and margin expansion
over the past five years, with operating margins well in excess of
Champion's averages. Carl and the rest of the North American team have
built an extremely well-run organization with an excellent reputation and
dedication to quality and service."
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 37
manufacturing facilities in North America and the United Kingdom and
partners with over 3,000 independent retailers, builders and developers.
For more information, please visit http://www.championhomes.com .
Forward-Looking Statements
This news release contains certain statements, including statements
regarding accretion, personnel, sales, market coverage and the financial
position of both Champion and North American, 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
CONTACT:
Investors: Laurie Van Raemdonck, Vice
President of Investor Relations of Champion Enterprises,
+1-248-340-7731, lvanraemdonck@championhomes.net ; Media: Tim
Hanson or Paul Kesman of Identity Investor Relations,
+1-248-258-2333, chb@identitypr.com
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