PHOENIX (AP) -- Cavco Industries Inc. and the Third Avenue Trust Value Fund said Wednesday they would buy Fleetwood Enterprises' manufactured housing business through a bankruptcy court auction for $28.9 million.
Phoenix-based Cavco makes model homes and vacation homes as well as manufactured housing.
Fleetwood, based in Riverside, Calif., also makes RVs. It has been operating under Chapter 11 protection since March. The sale to Cavco needs to undergo a competitive bidding process overseen by a bankruptcy judge.
Cavco's offer is to buy seven factories that employ about 700 people. The deal also includes an office building, inventory, trade names, contracts and leases.
Fleetwood will continue to seek bidders for the rest of its business.
Cavco shares rose 92 cents, or 3.6 percent, to $26.25 in morning trading.