MHProNews has learned that Skyline Corp. has come to terms to sell its Mansfield, Texas manufactured-housing facility to Champion Home Builders.
According to the Star-Telegram, under terms of the deal, Champion would pay a $99,000 deposit and then $2,125,000 upon closing, scheduled to occur on or before April 7, according to a filing with the SEC.
As the Daily Business News reported last week, Skyline was prepared to shut down their Mansfield, Texas facility due to an inability to operate profitably.
“The suspension is due to the plant being unable to profitably operate since it was converted from producing recreational vehicles to manufactured housing in fiscal 2014,” said Florea in an announcement to employees at the plant on February 24th.
“Challenges this location faced included fewer independent manufactured housing dealerships buying homes than anticipated resulting in sales volumes not reaching profitable levels.”
Skyline had originally stated in their recent 8-K filing that if a buyer could not be found by the time current production at the facility is completed at the end of March, the majority of the workforce will have to be terminated.
With the purchase, Champion Homes also alerted officials in Mansfield that they intend to hire the current workers at the facility, saving over 100 jobs.
Skyline also said that a portion of the property is leased for oil and gas production and that a subsidiary, Homette, would continue to receive royalties for 60 months following the sale.
As regular Daily Business News readers already know, Champion Homes was founded in 1953, producing more than 1.7 million factory-built pre-HUD Code mobile homes, post-HUD Code manufactured homes and modular homes or buildings throughout the United States, in the United Kingdom and western Canada. For more on the companies’ recent acquisition of a former Excel Homes facility in Susquehanna Township, Penn., click here.
Skyline Corporation is one of the oldest and larger independent producers of manufactured, modular and park model homes.
Skyline is also one of the industry stocks monitored each business day on the MH Industry’s leading professional news resource, the Daily Business News, on MHProNews. For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##
(Image credits are as shown above.)
Submitted by RC Williams to the Daily Business News, MHProNews
