Elkhart, Ind.-based Skyline Corp. announced that its board has unanimously approved a recommendation of the special committee of the board to remain an independent company focused on its plan to build long-term shareholder value.
“As a special committee, we carefully considered several strategic options and concluded for a variety of reasons that remaining independent represents the best opportunity to maximize long-term value for our shareholders. As part of our analysis, we investigated and evaluated several indications of interest from third parties to acquire the company or certain of its assets,” said John C. Firth, chairman of the special committee. “Ultimately, we concluded that a sale of the company at this time is not likely to bring a price that represents the intrinsic value of the company.”
The manufactured housing builder divested its RV interests in a sale to Middlebury, Ind.-based EverGreen Recreational Vehicles LLC in October of 2014. During that period, the company also faced a hostile takeover bid by Cavco Industries Inc.
Firth added, “Selling the company at a low price, at a time when we are continuing to see positive results in our core manufactured housing business, including a 29% increase in net sales from continuing operations in the first half of fiscal 2015 versus the first half of fiscal 2014, simply does not align with our duty to maximize value for the company’s shareholders or our desire to act in the best interests of the company’s other stakeholders.”
In reaching the recommendation to remain independent, the special committee explored the availability of market-priced debt capital to support Skyline’s strategic plan. Based on advanced discussions with potential lenders, the board expects that the company will enter into a $10 million credit facility in the next 60 days.