Champion Enterprises to Acquire Caledonian
Building Systems - PR Newswire
Feb 27, 2006 /PRNewswire-FirstCall via COMTEX/ --
Champion Enterprises, Inc. , a leader in factory-built
construction, announced today that it has entered
into an agreement to acquire United Kingdom-based
Calsafe Group (Holdings) Ltd. and its operating
subsidiary Caledonian Building Systems, a leading
steel-framed modular manufacturer, for approximately
$110 million. The transaction will be financed through
a combination of cash and debt, via an approximate
$80 million Sterling- denominated increase in Champion's
credit facility. A portion of the purchase price
will be earned upon the achievement of certain financial
benchmarks over the next four years. The transaction
is expected to close early in Champion's second
fiscal quarter, and will be accretive to earnings
in 2006.
Caledonian constructs steel-framed modular buildings
for use as prisons, multi-story residences and hotels,
as well as military accommodations for the UK Ministry
of Defense. The company, which operates three manufacturing
facilities on a single site in Newark, UK, recorded
revenues of approximately $150 million over the
last twelve months. Caledonian's steel-framed modular
technology allows for multi-story construction,
a key advantage over Champion's core North American
wood-framed construction techniques.
"Caledonian is a perfect complement to our
North American business," said William Griffiths,
president and CEO of Champion Enterprises, Inc.
"This transaction not only opens important
international distribution channels but it also
provides us with steel-framed technology that could
open up new markets in the US. The multi-story capability
will also help expand our multi-family product offerings.
As we have often said, our strategy is to grow Champion's
modular business both organically and through targeted
acquisitions. We are as excited about the modular
growth opportunities in the UK as we are those in
North America."
