Fleetwood Announces the Retirement of Founder and Share Repurchase
13 January 1998
Fleetwood Announces the Retirement of Founder and Share Repurchase
RIVERSIDE, Calif., Jan. 13 -- Fleetwood Enterprises, Inc.
, the nation's largest producer of manufactured housing and
recreational vehicles, announced today that John C. Crean, founder of the
Company, will retire as Chairman of the Board and Chief Executive Officer.
The Company has agreed to purchase the 72-year old Mr. Crean's current
shareholdings at $34 per share, which is an eight percent discount to the
closing market price of $36.9375 on January 12, 1998.
As a part of the Company's orderly management succession plans, Fleetwood
also announced the appointment of Glenn F. Kummer as the new Chairman and
Chief Executive Officer. Mr. Kummer has been the Company's President and
Chief Operating Officer since 1982. Nelson W. Potter has been named to
replace Mr. Kummer as President and Chief Operating Officer, and has been
appointed a member of the Board of Directors. Mr. Potter was previously the
Company's Executive Vice President - Operations.
The Company is in the process of pursuing appropriate financing
arrangements to purchase Mr. Crean's 5.2 million shares, which represent
approximately 14 percent of the Company's currently outstanding Common stock.
It is expected that the purchase transaction will be completed within 30 days.
The purchase of Mr. Crean's shares represents a continuation of the
Company's long-term plan of share repurchases, which is intended to enhance
shareholder value. In 1996, the Company successfully completed a Dutch
Auction tender offer for the purchase of 7.7 million shares of Common stock,
and also purchased 2.4 million Common shares from Mr. Crean, then representing
30 percent of his holdings.
Mr. Crean, who founded the Company in 1950, will become Chairman Emeritus
and is also expected to continue to consult with the Company in the area of
recreational vehicle product development.
SOURCE Fleetwood Enterprises, Inc.