Coachmen Industries Inc. has reached a definitive agreement to pay “nearly $10 million” for modular homebuilder Mod-U-Kraf Homes, Inc., Coachmen announced on Monday.
The acquisition of Mod-U-Kraf should be finalized in mid-June.
Coachmen’s plans to acquire Mod-U-Kraf were revealed in March, about a month before Thor Industries Inc. announced its intent to merge with Coachmen.
To buy Mod-U-Kraf, Coachmen will pay $11.75 a share for Mod-U-Kraf’s 826,000 outstanding shares.
In addition to being a major RV manufacturer, Coachmen believes it is the No. 1 builder of modular homes, a category that is distinct from manufactured homes.
The acquisition of Mod-U-Kraf is a part of Coachmen’s effort to eventually have its housing business become equal in size to its RV business, according to Chairman Claire Skinner.
Last year, Mod-U-Kraf had $22.2 million in sales and it earned a little more than $1.0 million.
During 1999, modular housing accounted for 17% of Coachmen’s $847.0 million in total revenues.