PR Newswire tells MHProNews that John C. Firth, Chairman of the Special Committee said, “As part of our analysis, we investigated and evaluated several indications of interest from third parties to acquire the company or certain of its assets. Ultimately, we concluded that a sale of the company at this time is not likely to bring a price that represents the intrinsic value of the company.”
Firth concluded that, “Selling the Company at a low price, at a time when we are continuing to see positive results in our core manufactured housing business, including a 29% increase in net sales from continuing operations in the first half of fiscal 2015 versus the first half of fiscal 2014, simply does not align with our duty to maximize value for the company’s shareholders or our desire to act in the best interests of the company’s other stakeholders.”
In reaching the recommendation to remain independent, the Special Committee explored the availability of market-priced debt capital to support Skyline’s strategic plan. Based on advanced discussions with potential lenders, the Board expects that the company will enter into a $10 Million credit facility in the next 60 days.
To enhance Skyline’s governance structure and the accountability of management for the results of the company’s operations, the Board decided that the company should at all times have an independent Chairman of the Board. The Chairman will occupy the company’s highest-ranking position and will be charged with leading the Board’s oversight of management’s execution of the company’s strategic plan.
As a result, John Firth was appointed as Skyline’s first independent Chairman. Firth, 57, currently serves as President and as a Director of Quality Dining, Inc., which operates more than 200 restaurants in seven states and employs approximately 7,500 people. Before joining Quality Dining, Firth was a partner in the law firm of Sopko & Firth in South Bend, Indiana. He has served on the Board of Directors of Skyline since 2006.
Skyline Corporation designs, produces and markets manufactured housing, modular housing and park models to independent dealers and manufactured housing communities located throughout the United States and Canada. The company has nine manufacturing facilities in eight states, and is one of the largest producers of manufactured and modular housing in the United States. ##
(Graphic Credit: Skyline Corporation)
Article submitted by Sandra Lane to – Daily Business News – MHProNews.
