Cavco Industries to Buy Commodore Corp.
(photo courtesy of Cavco Industries Inc.)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPhoenix-based Cavco Industries Inc. (Nasdaq: CVCO) will acquire The Commodore Corp. in Elkhart. Cavco says the deal is valued at $153 million and includes Commodore’s six manufacturing facilities and two retail locations.
Commodore, a builder of manufactured and modular housing, operates under brand names such as Commodore Homes of Pennsylvania, Commodore Homes of Indiana, and Colony Homes.
“During the acquisition process, we have developed a tremendous respect for what has been accomplished at Commodore under Barry Shein’s leadership,” Cavco Chief Executive Officer Bill Boor said. “Their reputation for quality, design, customer relationships, and integrity is very consistent with Cavco’s philosophy and approach to doing business. Commodore’s market presence is a strategic extension of our current footprint, providing a platform for additional growth in the Northeast.”
Commodore has more than 1,200 employees and operates across the Northeast, Midwest and Mid-Atlantic regions, with retail stores in Indiana and New York. In addition, Commodore’s commercial lending operations will be acquired by Cavco.
“What was most important to me and the other members of Commodore’s leadership was to find the best fit for our company and employees, and we’ve found that in Cavco,” said Barry Shein, president of Commodore. “Based on their vision for the industry and business philosophy, I have complete confidence that this is the right move for our dedicated associates, our valued suppliers, and our long-time customers.”
Cavco says the acquisition will create manufacturing cost and efficiency improvements across the combined company. In addition, the company says Commodore has developed advanced manufacturing technologies that will lead to “significant improvements” to the Cavco operations, and the combined network of plants will create distribution improvement opportunities.
The deal is expected to close in the company’s fiscal third quarter of 2022.