The statement came just hours after Phoenix-based manufactured housing builder Cavco Industries Inc. issued a news release “reaffirming” its interest to acquire Elkhart, Ind.-based Skyline.
“We are very optimistic about the purchase of the RV division from Skyline,” stated EverGreen Chairman Kelly L. Rose. “The EverGreen management team, led by our CEO Michael H. Schoeffler, our president and COO Mark A. Boessler, and our general manager Don Emahiser, are extremely excited about this purchase and are in the process of assimilating Skyline employees and dealers into the EverGreen family of companies.”
He added, “Retaining the talented employees of Skyline RV, as well as solidifying and building strong new relationships with the extensive dealer body of Skyline, is job one for our team. All brand names have been retained along with all intellectual property and this will be key to our success as we move forward to blend the two companies with our continuous improvement processes and innovation.”
Cavco’s statement Wednesday represented the latest public communication between the two companies, initiated by a Sept. 27 announcement by Skyline that it had reached a tentative agreement to sell its RV division to EverGreen. Cavco responded that same day by expressing its “interest in acquiring” Skyline. See related stories posted on RVBUSINESS.com by clicking here and here.
In Wednesday’s release, Cavco stated, “As part of the special committee’s thorough evaluation of all potential strategic proposals and other initiatives, Cavco reaffirms its repeated requests to promptly open a dialogue with Skyline to discuss previously mentioned ways that Cavco could assist Skyline to the benefit of Skyline shareholders, employees and other constituencies. These include Cavco asset-based loans to Skyline, Cavco’s possible purchase of specific Skyline assets, and Cavco’s purchase of all of Skyline’s outstanding shares at a premium to recent trading prices. Cavco has not yet been given the opportunity to even have a discussion with Skyline management regarding these issues, so it is unclear how the special committee can responsibly evaluate its strategic alternatives at the present time.”
Cavco noted that Skyline’s recent announcement of the potential sale of its RV division did not include any terms, financial or otherwise, making it impossible for Skyline’s shareholders and the market as a whole to assess whether the transaction would be beneficial or harmful to Skyline and its shareholders.
“In this regard, Cavco has been advised by independent third parties that they have expressed an interest in Skyline’s RV business but have been unable to engage Skyline in further discussions,” the company said. “Cavco strongly encourages Skyline’s special committee to thoroughly evaluate all alternatives available to Skyline, both as a whole and in respect of each of its divisions, before completing any transaction that may not generate an optimal return to shareholders.”