Fleetwood to Acquire HomeUSA, Inc., Agrees to Modify Retail Venture With Pulte
18 February 1998
Fleetwood to Acquire HomeUSA, Inc., Agrees to Modify Retail Venture With PulteRIVERSIDE, Calif., Feb. 17 -- Fleetwood Enterprises, Inc. , the nation's leading producer of manufactured housing and recreational vehicles, today announced that it has entered into a definitive agreement to acquire HomeUSA, Inc. , the leading independent national retailer of manufactured homes. Under the agreement, each share of HomeUSA Common stock will be converted into the right to receive $10.25, payable at the election of the holder in cash or Fleetwood Common stock, for an aggregate purchase price of approximately $162 million. The Fleetwood stock will be valued at an average price for the ten trading days ending on the tenth day prior to the closing, and the aggregate cash payment by Fleetwood will not exceed 49 percent of the total purchase price. The acquisition is expected to close in Fleetwood's fiscal quarter ending July 31, 1998, subject to certain conditions including approval by HomeUSA shareholders. Fleetwood and HomeUSA have also agreed in principle that HomeUSA will develop and construct new retail outlets for Fleetwood in the period preceding the closing on a fee basis. HomeUSA was founded in 1996 to pursue opportunities in the consolidation of manufactured housing retailers. Its nine founding companies had 1996 proforma revenues of $202.3 million and 1996 proforma net income of $6.9 million, and include Universal Housing, Jackson, TN; AAA Homes, Hattiesburg, MS; Patrick Home Center, Corinth, MS; McDonald Mobile Homes, Tulsa, OK; Mobile World, San Antonio, TX; First American Homes, Dothan, AL; Cooper's Mobile Homes, Wenatchee, WA; Home Folks Housing Center, Owensboro, KY; and WillMax Homes, Colorado Springs, CO. "The HomeUSA acquisition establishes Fleetwood as a major force in the manufactured housing retail sector," stated Glenn F. Kummer, Chairman of the Board and Chief Executive Officer of the Company. "We are delighted with this new relationship and the outstanding group of retailers assembled by HomeUSA, and see this as a major step in our goal of becoming a vertically integrated manufactured housing company. At the same time, Fleetwood will continue to market its homes through its independent retailer network, and this purchase will not affect our ongoing independent relationships." The Company also announced that it has agreed to purchase Pulte Corporation's 51 percent interest in Expression Homes, Inc., a venture formed in 1997 by Fleetwood and Pulte to engage in the manufactured housing retail business, in order to consolidate Expression's retail operations with those of HomeUSA. Both Expression and HomeUSA are currently engaged in the acquisition of existing retail locations and in developing new "greenfield" sales locations. Fleetwood and Pulte will continue to cooperate on manufactured housing and development matters. The Company has also agreed to purchase Pulte's manufactured housing sales location in Raleigh, NC. Terms of the purchase were not disclosed. "Expression Homes has quickly become a significant force in manufactured housing retailing," Kummer continued. "We appreciate Pulte's willingness to modify our Expression Homes relationship as our retail strategy has changed to adapt to current retail market conditions. We value our relationship with Pulte and look forward to continuing to work with them on projects of mutual interest," Kummer concluded. SOURCE Fleetwood Enterprises, Inc.