Skyline Corp and Champion Enterprises Holdings LLC, the parent company of Champion Home Builders Inc., today (June 4) announced the closing of the previously announced combination of their operations.
According to a press release, the combined company will now operate as Skyline Champion Corp. and its common stock will trade on the New York Stock Exchange under the ticker symbol “SKY.” Skyline had previously traded on the NYSE American exchange under the same ticker symbol.
“We are very excited to close the transaction and look forward to operating as Skyline Champion Corp.,” said Keith Anderson, Skyline Champion’s chief executive officer. “Skyline Champion is now the largest independent publicly traded factory-built housing company in the United States with combined revenue of more than $1.3 billion. The increased size and scale, coupled with a strong balance sheet and significant cash flow generation capability, has us well positioned to execute our long term growth strategy.”
“There is a tremendous opportunity for Skyline Champion to take advantage of the attractive market dynamics in the industry given our broader geographic footprint across North America and our enhanced product offering,” he added. “We will remain committed to providing quality products and outstanding customer service as we focus on executing our strategy on our newly enhanced platform.”
Anderson continued, “As we integrate the businesses, we continue to expect to achieve synergies of approximately $10 to $15 million, primarily driven by direct cost savings, reduced overhead costs and operational improvement opportunities. Additional synergies are expected through cross-selling and distribution optimization through the combined company’s owned and independent dealer network.”
In conjunction with the closing of the transaction, Skyline issued approximately 47.8 million shares to Champion, representing 84.5% of the common stock of the combined company on a fully-diluted basis. Skyline also declared a special cash dividend of $0.62381 per share of Skyline’s common stock that was paid on May 31 to Skyline’s shareholders of record at the close of business on May 25.