PHOENIX, Aug. 12, 2009 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq:CVCO) today announced that a federal bankruptcy judge approved the sale of certain manufactured housing assets of Fleetwood Enterprises, Inc. to Cavco and an investment partner, Third Avenue Trust Value Fund (TAVFX), through FH Holding, Inc. ("FH"), their jointly owned corporation, headquartered in Phoenix, Ariz.
FH emerged as the successful bidder for the assets during an auction sale held on August 10, 2009. FH will pay $26.6 million for the assets subject to customary closing conditions and certain post-closing purchase price adjustments. In addition, FH will assume certain liabilities of Fleetwood, including among other things, certain warranty and contractual obligations.
The assets include seven operating manufactured housing plants, one office building, one idled plant, all related equipment, accounts receivable, inventory, certain trademarks and trade names, intellectual property, and specified contracts and leases. The operating manufactured housing plants are located in Nampa, Ida.; Woodburn, Ore.; Riverside, Calif.; Waco, Tex.; Lafayette, Tenn.; Douglas, Ga.; and Rocky Mount, Va. The idled plant, located in Woodland, Calif., was added to FH's bid during the auction.
Joseph Stegmayer, Chairman, President and Chief Executive Officer commented, "We are pleased to have the opportunity to bring aboard Fleetwood's team of experienced, highly regarded people and to integrate the strong Fleetwood brand and family of product offerings with our own growing business. We have been patient in seeking additional growth opportunities and believe that this acquisition will be a positive long-term strategic move for Cavco and our shareholders."
About Cavco Industries, Inc.
Cavco is a leading producer of manufactured housing, park model homes, and vacation cabins in the United States. Headquartered in Phoenix, Ariz., Cavco has built a reputation for quality and value since it opened for business in 1965. Cavco's factory-built homes are produced under various trade names and in a variety of floor plans and price ranges. The company employs approximately 600 people and operates two manufacturing plants in the Phoenix area and one in Seguin, Tex. Additional information about Cavco can be found at www.cavco.com.
About Third Avenue Management
Third Avenue Management manages approximately $13 billion of assets for private and institutional clients. Most or all of Third Avenue's proposed investment in FH Holding, Inc. will be made by Third Avenue Value Fund, the company's flagship mutual fund.
Certain statements contained in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are typically included, for example, in discussions regarding the manufactured housing and site-built housing industries; our financial performance and operating results; and the expected effect of certain risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance. Factors that could cause such differences to occur include, but are not limited to: adverse industry conditions; general deterioration in economic conditions and continued turmoil in the credit markets; a write-off of all or part of our goodwill, which could adversely affect operating results and net worth; the cyclical and seasonal nature of our business; limitations on our ability to raise capital; curtailment of available financing in the manufactured housing industry; our contingent repurchase obligations related to wholesale financing; competition; our ability to maintain relationships with retailers; labor shortages; pricing and availability of raw materials and unfavorable zoning ordinances; our ability to complete any acquisitions or successfully integrate such acquisitions or attain the anticipated benefits; together with all of the other risks described in our filings with the Securities and Exchange Commission. Readers are specifically referred to the Risk Factors described in Item 1A of the 2009 Form 10-K, as may be amended from time to time, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise. Investors should not place any reliance on any such forward-looking statements.