Cavco Industries To Acquire Commodore Corp For $153M

Cavco Industries Inc CVCO signed a binding offer to acquire the business and certain assets and liabilities of Commodore Corporation, a builder of manufactured and modular housing, for $153 million in cash.
The acquisition includes Commodore’s six manufacturing facilities and two wholly-owned retail locations.
Commodore generated net sales of about $258 million and sold over 6,600 modules, equating to over 3,700 homes, in the last 12 months ended March 31, 2021.
Cavco expects the deal to expand its geographic reach into the Northeast United States, and enhance its presence in the Midwest, and Mid-Atlantic markets.
It expects to close the transaction in Q3 FY22.
Cavco expects the proposed deal to be significantly accretive to earnings and cash flow from operations in fiscal year 2022.
Cavco to fund the acquisition entirely with cash on hand. It held $322.2 million in cash and equivalents as of March 31, 2021.
Price action: CVCO shares are trading higher by 3.60% at $225.69 on the last check Monday.