Cavco Industries Acquires American Homestar for $190 Million in Cash Transaction
**Cavco Industries Strengthens Manufactured Home Market Position with $190 Million Acquisition of American Homestar Corporation**
Cavco Industries, a leading manufacturer of affordable housing solutions, has announced its intention to acquire American Homestar Corporation for $190 million in cash. The deal, expected to close in the third quarter of fiscal year 2026, subject to regulatory approvals, will bolster Cavco's presence in the South-Central U.S. and enhance its operational efficiency.
The acquisition price is subject to customary purchase price adjustments and will be funded entirely from Cavco's cash reserves. American Homestar, founded by Buck Teeter in 1971, generated $194 million in revenue and had a net income of $16.6 million for the twelve months ending May 31, 2025. During the same period, the company produced 1,676 homes.
The strategic move aims to strengthen Cavco's position in the manufactured home market. Key implications include market expansion, operational integration, and revenue and earnings growth. By acquiring American Homestar, Cavco will expand its presence in Texas, Louisiana, and Oklahoma, where American Homestar operates two manufacturing facilities and 19 retail locations.
The acquisition of a vertically integrated company will allow Cavco to leverage diverse capabilities in manufacturing, retailing, finance, and insurance, enhancing operational efficiency and customer offerings. The alliance is expected to yield immediate earnings accretion, contributing to Cavco's revenue growth and increasing its market share in the manufactured housing sector.
Cavco will retain a strong cash position for future investments after the acquisition. DLA Piper served as the legal advisor to Cavco for the American Homestar acquisition, while TN Capital Advisors acted as the exclusive financial advisor to Cavco for the transaction.
Dwayne Teeter, American Homestar's President and CEO, expressed his excitement about the combination with Cavco, describing it as a perfect cultural fit. Jackson Walker served as the legal advisor to American Homestar for the transaction. Bill Boor, Cavco's President and CEO, expressed gratitude for American Homestar's trust and expressed his excitement for the alliance.
The combined company is expected to position itself well for competition in a changing environment. American Homestar focuses on providing high-quality, affordable housing and fostering a stable work environment. The acquisition strengthens Cavco's presence in the South-Central U.S., a vital manufactured housing market.
The acquisition of American Homestar Corporation will strengthen Cavco Industries' position in the manufactured home market, given that the deal involves a financially robust company with significant business operations, as evidenced by its $194 million revenue and $16.6 million net income. This strategic move in the industry is expected to contribute to Cavco's growth, with implications including revenue and earnings growth, operational integration, and market expansion.
