Skyline, a publicly traded company, reported, “The transaction was completed pursuant to the terms of an asset purchase agreement and a real property purchase agreement entered into on Oct. 7 between Skyline and an affiliate of Evergreen, Skyline RE Holding LLC, relating to the purchase of an RV manufacturing facility located in Bristol, Ind.”
The cash sales price for the RV business and real estate, which Skyline received at closing, totaled approximately $981,000. In addition, Evergreen has the right, but not the obligation, to purchase approximately $1.6 million of raw material inventory on-hand at 50% of Skyline’s cost.
“The announcement reflects our board’s and management team’s commitment to executing on the company’s strategic plan and driving long-term shareholder value,” said Bruce G. Page, president and CEO of Skyline, which will continue producing manufactured housing. “We believe this transaction with Evergreen is aligned with our strategic value-creation objectives and is in the best interest of shareholders. We will continue to focus on driving profitable growth and serving customers in our core business of manufactured housing, where we see substantial opportunities for the future.”
Kelly L. Rose, chairman of Middlebury, Ind.-based Evergreen, commented, “The Evergreen team is excited to merge Skyline’s talented employees and recognized brand names under the Evergreen RV umbrella. We look forward to furthering the 50-year legacy of Skyline and building on the strengths of two great companies.”
On Thursday Rose indicated that EverGreen had hired approximately 100 production, purchasing and salespeople working out of Skyline’s RV division facilities in Bristol.
The transaction was completed despite takeover efforts by Phoenix-based manufactured housing builder Cavco Industries Inc. as outlined in the filing of an “interest to acquire” Skyline on Sept. 27. To read a previous RVBUSINESS.com posting click here.