Cavco Industries Announces Planned Acquisition of Manufactured Home Builder and Retailer, American Homestar Corporation
Cavco Industries (Nasdaq: CVCO) has announced a definitive agreement to acquire American Homestar Corporation for $190 million in cash. American Homestar, known as Oak Creek Homes, operates two manufacturing facilities and nineteen retail locations, with operations in Texas, Louisiana, and Oklahoma.
The target company generated $194 million in revenue and $16.6 million in net income for the twelve months ended May 31, 2025, producing 1,676 homes with its 800 employees. The acquisition, funded entirely from Cavco's cash reserves, is expected to close in Q3 FY2026, subject to regulatory approvals.
The strategic acquisition strengthens Cavco's presence in the South-Central U.S. manufactured housing market and is expected to be accretive to earnings and cash flow from operations, with potential for operational and cost synergies.
Cavco Industries (Nasdaq: CVCO) ha annunciato un accordo definitivo per acquisire American Homestar Corporation per 190 milioni di dollari in contanti. American Homestar, nota come Oak Creek Homes, gestisce due stabilimenti produttivi e diciannove punti vendita con attività in Texas, Louisiana e Oklahoma.
L'azienda target ha generato 194 milioni di dollari di ricavi e 16,6 milioni di dollari di utile netto nei dodici mesi terminati il 31 maggio 2025, producendo 1.676 case con i suoi 800 dipendenti. L'acquisizione, finanziata interamente con le riserve di liquidità di Cavco, dovrebbe concludersi nel terzo trimestre dell'anno fiscale 2026, soggetta alle approvazioni regolamentari.
Questa acquisizione strategica rafforza la presenza di Cavco nel mercato delle case prefabbricate del Sud-Centro degli Stati Uniti e si prevede che aumenterà utili e flussi di cassa operativi, con potenziali sinergie operative e di costo.
Cavco Industries (Nasdaq: CVCO) ha anunciado un acuerdo definitivo para adquirir American Homestar Corporation por 190 millones de dólares en efectivo. American Homestar, conocida como Oak Creek Homes, opera dos plantas de fabricación y diecinueve puntos de venta, con operaciones en Texas, Louisiana y Oklahoma.
La empresa objetivo generó 194 millones de dólares en ingresos y 16,6 millones de dólares en ingresos netos durante los doce meses terminados el 31 de mayo de 2025, produciendo 1.676 viviendas con sus 800 empleados. La adquisición, financiada completamente con las reservas de efectivo de Cavco, se espera que se cierre en el tercer trimestre del año fiscal 2026, sujeta a aprobaciones regulatorias.
La adquisición estratégica fortalece la presencia de Cavco en el mercado de viviendas prefabricadas del centro-sur de EE.UU. y se espera que aumente las ganancias y el flujo de caja operativo, con potenciales sinergias operativas y de costos.
Cavco Industries (나스닥: CVCO)는 American Homestar Corporation을 현금 1억 9천만 달러에 인수하는 최종 계약을 발표했습니다. American Homestar는 Oak Creek Homes로 알려져 있으며, 텍사스, 루이지애나, 오클라호마에서 두 개의 제조 시설과 열아홉 개의 소매 지점을 운영하고 있습니다.
대상 회사는 2025년 5월 31일 종료된 12개월 동안 1억 9,400만 달러의 매출과 1,660만 달러의 순이익을 기록했으며, 800명의 직원과 함께 1,676채의 주택을 생산했습니다. 이번 인수는 Cavco의 현금 보유액으로 전액 자금 조달되었으며, 규제 승인에 따라 2026 회계연도 3분기에 완료될 예정입니다.
이번 전략적 인수는 미국 중남부 제조 주택 시장에서 Cavco의 입지를 강화하며, 영업이익과 현금 흐름에 긍정적인 영향을 미칠 것으로 예상되고, 운영 및 비용 시너지 효과도 기대됩니다.
Cavco Industries (Nasdaq : CVCO) a annoncé un accord définitif pour acquérir American Homestar Corporation pour 190 millions de dollars en espèces. American Homestar, connue sous le nom d'Oak Creek Homes, exploite deux sites de production et dix-neuf points de vente, avec des opérations au Texas, en Louisiane et en Oklahoma.
La société cible a généré 194 millions de dollars de chiffre d'affaires et 16,6 millions de dollars de bénéfice net pour les douze mois clos au 31 mai 2025, produisant 1 676 maisons avec ses 800 employés. L'acquisition, financée entièrement sur les réserves de trésorerie de Cavco, devrait être finalisée au troisième trimestre de l'exercice 2026, sous réserve des approbations réglementaires.
Cette acquisition stratégique renforce la présence de Cavco sur le marché des maisons manufacturées du centre-sud des États-Unis et devrait être accretive pour les bénéfices et les flux de trésorerie opérationnels, avec un potentiel de synergies opérationnelles et de coûts.
Cavco Industries (Nasdaq: CVCO) hat eine endgültige Vereinbarung zur Übernahme von American Homestar Corporation für 190 Millionen US-Dollar in bar bekannt gegeben. American Homestar, bekannt als Oak Creek Homes, betreibt zwei Produktionsstätten und neunzehn Einzelhandelsstandorte mit Aktivitäten in Texas, Louisiana und Oklahoma.
Das Zielunternehmen erzielte in den zwölf Monaten bis zum 31. Mai 2025 einen Umsatz von 194 Millionen US-Dollar und einen Nettogewinn von 16,6 Millionen US-Dollar, wobei 1.676 Häuser mit 800 Mitarbeitern produziert wurden. Die Übernahme, die vollständig aus den Barreserven von Cavco finanziert wird, soll im dritten Quartal des Geschäftsjahres 2026 abgeschlossen werden, vorbehaltlich behördlicher Genehmigungen.
Die strategische Übernahme stärkt Cavcos Präsenz im Markt für Fertighäuser im südzentralen US-Bereich und wird voraussichtlich zu einem Anstieg von Gewinn und operativem Cashflow führen, mit Potenzial für operative und Kostensynergien.
- All-cash acquisition of $190M to be funded entirely from existing cash reserves
- Target company reports strong financials with $194M revenue and $16.6M net income
- Expected to be immediately accretive to earnings and cash flow
- Strategic expansion into key South-Central U.S. market with 19 retail locations
- Significant operational and cost synergies potential identified
- Cavco will maintain substantial cash position post-acquisition for future investments
- Large cash deployment of $190M may impact short-term liquidity
- Integration risks with 800 employees and multiple facilities
- Regulatory approvals still pending and could delay closing
Insights
Cavco's $190M acquisition of American Homestar strengthens its manufactured housing position with immediate earnings accretion and strategic market expansion.
Cavco Industries' $190 million all-cash acquisition of American Homestar represents a strategic move to expand its manufactured housing footprint in the crucial South-Central U.S. market. This deal is structured at a 10.7x multiple of American Homestar's
The transaction brings immediate scale benefits through American Homestar's two manufacturing facilities producing 1,676 homes annually and nineteen retail locations. Beyond the physical assets, Cavco gains American Homestar's vertical integration advantages in financing and insurance operations, creating potential cross-selling opportunities across Cavco's existing customer base.
What's particularly notable is Cavco's ability to fund this sizable acquisition entirely from cash reserves without taking on debt, indicating exceptionally strong balance sheet health. Post-acquisition, management explicitly states they'll still maintain significant cash reserves for future strategic investments, suggesting this may be part of a broader expansion strategy rather than an isolated purchase.
The expected operational and cost synergies from shared best practices, purchasing power, and product optimization should enhance margins beyond American Homestar's already impressive profitability. With management's confirmation that the deal will be immediately accretive to earnings and cash flow, this acquisition appears well-positioned to create shareholder value while strengthening Cavco's competitive position in a critical regional market.
PHOENIX, July 14, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) ("Cavco" or the "Company") announced today that it has entered into a definitive agreement to acquire American Homestar Corporation and its subsidiaries (collectively, "American Homestar"), a Houston-based company best known in the market as Oak Creek Homes. American Homestar operates two manufacturing facilities, nineteen retail locations, writes and sells a limited number of manufactured home loans and acts as an agent for third party insurers. With 800 employees, revenues for the twelve months ended May 31, 2025 were
Cavco will acquire American Homestar for
Cavco's President and CEO Bill Boor said, "Throughout the acquisition process, we developed a tremendous respect for what Buck Teeter, Dwayne Teeter, and the entire American Homestar team have built. For decades, they guided the company through industry downturns and challenges, consistently adapting and ultimately thriving. American Homestar is a leader in our industry because it embodies the Teeters’ values and focus on providing quality homes for deserving families. We at Cavco are grateful for their trust and are excited to join forces in the South Central U.S."
American Homestar's President and CEO Dwayne Teeter commented, "Founded by my father, Buck Teeter, in 1971, American Homestar focused on providing high-quality, affordable housing while also fostering a stable and rewarding work environment for its employees. As we enter this exciting new alliance with Cavco, we know this combination is a perfect cultural fit and that our people will be part of a dynamic, growing company, well positioned to compete in an ever-changing environment. We thank Bill Boor and the entire Cavco team for their interest in American Homestar and their commitment to making this transaction happen."
Highlights of the proposed transaction:
- Financial Impact: Cavco expects this proposed acquisition to be accretive to earnings and cash flow from operations.
- Potential for operational and cost synergies: In addition to implementation of shared best practices, the acquisition provides the opportunity for meaningful cost, purchasing and product optimization synergies.
- Strengthens Cavco’s Position in the South-Central U.S.: Expands Cavco’s presence across Texas and surrounding states, one of the country’s most important manufactured housing markets.
- Capital Allocation: Following this strategic deployment of existing cash, Cavco will still maintain a significant cash position available for continued strategic investment.
TN Capital Advisors LLC acted as exclusive financial advisor and DLA Piper served as legal advisor to Cavco for the transaction. Jackson Walker, LLP was legal advisor to American Homestar.
Conference Call and Webcast Details
Cavco's management will hold a conference call and webcast to discuss the transaction on July 16, 2025, at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com.
About Cavco
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at https://www.cavcohomes.com/.
About American Homestar
American Homestar was founded in 1971 by Buck Teeter and is a vertically integrated factory-built housing company, with operations in manufacturing, retailing, finance and insurance. It operates two manufacturing facilities in Texas, with retail locations across Texas, Louisiana and Oklahoma. Additional information about American Homestar can be found at https://americanhomestar.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) the anticipated benefits and synergies of the proposed acquisition of American Homestar, (ii) Cavco’s cash position following the potential American Homestar acquisition and anticipated uses of such cash, (iii) Cavco’s expected financial performance and operating results, such as revenue and gross margin percentage; (iv) our liquidity and financial resources; (v) Cavco’s business and industry outlook; (vi) the expected effect of certain risks and uncertainties on our business; and (vii) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) compliance with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating manufactured housing, privacy, the internet, and accounting matters; (ix) successful defense against litigation, government inquiries, and investigations, (x) timely completion of the proposed acquisition of American Homestar; (xi) the ability to successfully integrate American Homestar’s operations, systems, and personnel with those of Cavco; (xii) realization of anticipated synergies and benefits from the acquisition; (xiii) potential disruptions to Cavco’s business or the business of American Homestar as a result of the acquisition or the integration process; and (xiv) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 29, 2025 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods.
CAVCO INDUSTRIES, INC.
Exhibit A
Unaudited Non-GAAP Financial Measures of American Homestar, Inc.– Adjusted EBITDA
(Dollars in millions)
(Unaudited)
Use of non-GAAP measures
To supplement financial measures presented in accordance with GAAP, we report Adjusted EBITDA, a non-GAAP financial measure. This non-GAAP financial measure is not a substitute for GAAP results and should be considered in conjunction with them. Management believes Adjusted EBITDA is useful because it provides an additional tool to compare business performance across companies and periods, and it is commonly used by financial analysts when evaluating operating performance.
| Twelve Months Ended | |||
| May 31, 2025 | |||
| Net income | $ | 16.6 | |
| Provision for income taxes | 5.0 | ||
| Depreciation and amortization | 1.3 | ||
| Interest expense | — | ||
| Other income | (5.1 | ) | |
| Adjusted EBITDA | $ | 17.8 | |
For additional information, contact:
Mark Fusler
Corporate Controller and Investor Relations
Email: investor_relations@cavco.com
Phone: 602-256-6263
On the Internet: www.cavcohomes.com
* See Exhibit A for the reconciliation of American Homestar’s Net Income to Adjusted EBITDA
FAQ
How much is Cavco paying to acquire American Homestar Corporation?
What are American Homestar's key financial metrics for the period ending May 31, 2025?
When is the CVCO acquisition of American Homestar expected to close?
How many facilities and employees does American Homestar currently operate?
How will Cavco fund the American Homestar acquisition?
What are the expected benefits of Cavco's acquisition of American Homestar?
