LONDON, UK / ACCESSWIRE / January 09, 2018 / Active-Investors.com has just released a free research report on Skyline Corp. (NYSE: SKY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SKY as the Company's latest news hit the wire. On January 05, 2018, the Company declared that it has entered into a definitive agreement to combine its operations with Champion Enterprises Holdings, LLC ("Champion"), the parent Company of Champion Home Builders, Inc. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Skyline most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Terms of the Agreement
The new entity will be named Skyline Champion Corp. and will trade on the NYSE American under the ticker symbol "SKY". The combined Company will be headquartered in Elkhart, Indiana with an additional executive office in Troy, Michigan. The transaction, expected to close in the first half of 2018, is subject to the receipt of regulatory approvals and other customary closing conditions, as well as the approval of Skyline's shareholders.
Following the agreement, Champion will contribute 100% of the shares of its operating subsidiaries, Champion Home Builders, Inc. and CHB International B.V., to Skyline. In exchange, Skyline will issue around 47.8 million shares to Champion, representing 84.5% of the common stock of the combined Company on a fully-diluted basis. Before closing, Skyline is likely to declare a dividend to its existing shareholders of its excess net cash available for distribution after certain transactional expenses.
Strategic Benefits of the Agreement
The transaction will result in significant annual synergies and increase in size and scale of the new entity. The resulting strong pro forma balance sheet and cash flow is expected to support continued flexibility and long-term strategic growth. The agreement is likely to generate significant annual synergies to be achieved through direct cost savings, reduced overhead costs, and operational improvement opportunities. Additional synergies also are expected through cross-selling and distribution optimization by leveraging the combined Company's owned and independent dealer network.
Combination to Create United States' Largest Publicly Traded Factory-Built Housing Company
The combination will create United States' largest publicly traded factory-built housing Company, with combined revenues of more than $1 billion in pro forma revenue for the past fiscal year ending in August/September. Skyline Champion Corp. will operate 36 manufacturing facilities in North America, of which 24 are in the top 20 states for manufactured housing shipments. The combined Company will offer manufactured, modular, and park model homes, as well as commercial structures, also owning 21 owned factory-direct retail locations and providing transportation services to the manufactured housing industry from 10 locations across the United States.
Leadership
The Board of Directors of the combined Company will comprise of nine Directors designated by Champion and two Directors designated by Skyline. Upon closing of the transaction, Keith Anderson, Chief Executive Officer (CEO) of Champion, will serve as CEO of the new entity. Laurie Hough, Chief Financial Officer (CFO) of Champion, will serve as CFO of the combined Company. Skyline is likely to nominate John Firth, current Chairman of the Board of Skyline, and Rich Florea, current CEO of Skyline, as Directors of the combined Company; and Art Decio, an original founder of Skyline and member of the Board of Directors since 1959, as a senior advisor to the combined Company's Board of Directors.
Financial and Legal Advisors
Jefferies LLC acted as financial advisor and Barnes & Thornburg LLP acted as legal advisor to Skyline. Ice Miller LLP acted as legal counsel to Skyline's Special Committee of the Board.
RBC Capital Markets, LLC served as financial advisor, and Ropes & Gray LLP acted as legal advisor to Champion.
Combined Company Will Have a Strong Presence in North America
Commenting on the agreement, Rich Florea, CEO of Skyline, stated that the combination of Skyline and Champion represents a unique opportunity for two well-respected Companies with strong brand history to come together and continue providing high-quality homes for customers, while also providing the greatest long-term value for shareholders. The combined Company will have a strong presence throughout North America and will operate at a significant scale in addition to offering a broader choice of homes to customers.
As per the news report, post announcement shares of Skyline Corp. gained approximately 50%.
About Skyline Corp.
Founded in 1951, Skyline and its consolidated subsidiaries design, produce, and market manufactured housing, modular housing, and park models to independent dealers, developers, campgrounds, and manufactured housing communities located throughout the United States and Canada. The Company is headquartered in Elkhart, Indiana.
About Champion Home Builders, Inc.
Established in 1953 and headquartered in Troy, Michigan, Champion Home Builders designs and builds manufactured, modular, and mobile homes for a range of homebuyers. The Company is a subsidiary of Champion Enterprises Holdings, LLC, and has manufacturing facilities in North America and Europe.
Stock Performance Snapshot
January 08, 2018 - At Monday's closing bell, Skyline's stock surged 15.79%, ending the trading session at $22.00.
Volume traded for the day: 528.99 thousand shares, which was above the 3-month average volume of 62.11 thousand shares.
Stock performance in the last month – up 71.07%; previous three-month period – up 66.16%; past twelve-month period – up 51.41%; and year-to-date - up 71.21%
After yesterday's close, Skyline's market cap was at $124.74 million.
Price to Earnings (P/E) ratio was at 255.81.
The stock is part of the Industrial Goods sector, categorized under the Manufactured Housing industry. This sector was up 0.3% at the end of the session.
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