Benzinga | Jul 26, 2021 10:05AM EDT

Cavco Industries To Acquire Commodore Corp For $153M

* Cavco Industries Inc (NASDAQ: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.