AUBURN HILLS, Mich. (AP) — Home manufacturer Champion Enterprises Inc. said Thursday that it agreed to acquire SRI Homes, a Canadian producer of manufactured and modular homes, for $114 million Canadian ($113.9 million).
Total consideration includes $90 million Canadian in cash to be paid at closing and a $24 million Canadian pre-payable note due Jan. 2, 2009 bearing interest at a rate of 8 1/3 percent per year, Champion said.
SRI operates a trio of manufacturing facilities in British Columbia, Alberta and Saskatchewan that sold a total of about 1,350 units for the year ended in September.
When combined with Champion's existing Canadian operations, sales for the same period totaled about 2,600 units, resulting in a combined Canadian factory-built housing market share of an estimated 39 percent, Champion said.
Robert Adria, president of SRI Homes, will remain in the position after joining Champion, the company said.
Company officials said the acquisition will boost the company's 2008 earnings and improve its market position in Western Canada.
Champion shares fell 26 cents, or 3.1 percent, to close at $8.25 and remain unchanged in aftermarket trading.