Manufactured-home park operator Chateau Communities Inc., which also has 1,400 park model and RV sites in its portfolio, will be taken private in a $2.2 billion deal this fall.
Chicago-based Hometown America LLC announced plans Thursday (May 29) to acquire Chateau in a deal that Chateau’s management finds acceptable.
The deal calls for the shareholders of Chateau, a New York Stock Exchange-listed company, to be paid $29.25 a share in cash and Hometown would assume $1.2 billion-worth of Chateau’s debt.
Based upon Chateau having 35 million shares outstanding, Hometown would pay a total of $1 billion in cash to Chateau’s shareholders.
The boards of Chateau and Hometown and Chateau’s shareholders need to approve the deal, and that is expected in the fall.
Chateau would be the second RV campground operator to go private this year. Recently, Thousand Trails Inc., an American Stock Exchange-listed company, announced plans to be taken private by investment firm Kohlberg & Co. LLC. Kohlberg is expected to complete the acquisition of Thousand Trails’ shares in late July or early August.