$114 Million Acquisition Positions Champion as the Market Leader in Western
Canada
AUBURN HILLS, Mich., Dec. 20 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE: CHB), a leader in factory-built construction,
announced today that it has entered into an agreement to acquire SRI Homes,
the largest producer of manufactured and modular homes in Canada, for $114
million (CAD). Total consideration is comprised of $90 million (CAD) cash
to be paid at closing and a $24 million (CAD) pre-payable note due January
2, 2009 bearing interest at a rate of 8 1/3 percent per annum.
SRI Homes operates three manufacturing facilities located in the
Canadian provinces of British Columbia, Alberta and Saskatchewan which sold
approximately 1,350 units on a combined basis for the twelve months ended
September 2007. When combined with Champion's existing Canadian operations,
sales for the same period totaled approximately 2,600 units, resulting in a
combined Canadian factory-built housing market share of an estimated 39
percent. Robert Adria, president of SRI Homes, has been with the company
for over 15 years and will remain in this position after joining Champion.
"This acquisition, which will be accretive to Champion's 2008 earnings,
represents another exciting step in our growth and diversification strategy
by expanding our presence in a geographic region which continues to
experience economic growth and robust residential and commercial
construction markets. SRI Homes' retailer-based distribution will
complement that of our existing operations in the region, substantially
improving Champion's already strong market position in western Canada,"
stated William Griffiths, chairman, president and chief executive officer
of Champion Enterprises, Inc. "We are proud to have Robert and the rest of
the SRI team become part of Champion. They have built an extremely
well-run, successful organization producing high quality homes and
delivering strong operating margins."
The effective date of the transaction is close of business on Friday,
Dec. 21, 2007.
About Champion
Auburn Hills, Michigan-based Champion Enterprises, Inc., a leader in
factory-built construction, today operates 31 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 SRI Homes
SRI Homes which, together with predecessor companies, was founded in
1963, operates three manufacturing facilities in British Columbia, Alberta
and Saskatchewan and is the largest factory - built home builder in Canada,
selling high quality manufactured and modular homes through a network of
independent retailers throughout western and central Canada. For more
information, please visit http://www.srihomes.com.
Forward-Looking Statements
This news release contains certain statements, including statements
regarding earnings accretion, market share and market position, 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.srihomes.com
http://www.prnewswire.com/comp/110861.html /
CONTACT:
Investors, Phyllis Knight, Executive Vice
President and CFO of Champion Enterprises, Inc., +1-248-340-9090;
or Media, Christine Fisher of pushtwentytwo, +1-248-335-9500 ext.
30, cfisher@pushtwentytwo.com
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