CHAMPION HOMES INC stock forum
SKY The agreement to acquire Regional Homes looks good to me. This combines the #2 mobile/prefab home builder (Skyline Champion) with the #4 (Regional). The #1 is Clayton Homes, a subsidiary of Berkshire Hathaway, which has about a 50% market share, and #3 is Cavco Industries (CVCO). Both CVCO and SKY trade at a 7.2x EV/EBITDA multiple. From the investor deck it appears that the acquisition will take place at about a 5.5x multiple, so this should improve metrics for Skyline, even before overhead reductions, cross-selling opportunities, and scale economies.The manufactured housing is now highly consolidated, which should really benefit the remaining participants.