Cavco Industries to acquire American Homestar for $190M in cash

Cavco Industries (CVCO) announced that it has entered into a definitive agreement to acquire American Homestar Corporation and its subsidiaries. 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 were $194M, net income was $16.6M and earnings before interest, taxes, depreciation, amortization, and other income was $17.8M. During that time, American Homestar produced 1,676 homes. Cavco will acquire American Homestar for $190M in cash, subject to customary purchase price adjustments. The acquisition is intended to be funded entirely from the company’s cash on hand and is expected to close in the company’s third quarter of fiscal year 2026, subject to applicable regulatory approvals and the satisfaction of certain customary closing conditions. Cavco expects this proposed acquisition to be accretive to earnings and cash flow from operations.