Cavco Industries Acquires American Homestar Corporation for Undisclosed Amount

• Cavco Industries acquires American Homestar Corporation for strategic growth. • American Homestar operates two manufacturing facilities and 19 retail locations. • Company expands its presence in the manufactured home market. • Acquisition strengthens Cavco's market position and increases revenue potential.

Phoenix, July 2, 2025 — Cavco Industries, Inc. (Nasdaq: CVCO) has announced a definitive agreement to acquire American Homestar Corporation and its subsidiaries (collectively, "American Homestar"). The acquisition, valued at $190 million in cash, is subject to customary purchase price adjustments and is expected to close in the third quarter of fiscal year 2026, pending regulatory approvals and satisfaction of customary closing conditions [1].

American Homestar, founded in 1971 by Buck Teeter, operates two manufacturing facilities and 19 retail locations across Texas, Louisiana, and Oklahoma. The company produced 1,676 homes in the twelve months ended May 31, 2025, generating $194 million in revenues and $17.8 million in Adjusted EBITDA (non-GAAP) [1].

Cavco Industries, headquartered in Phoenix, Arizona, is one of the largest producers of manufactured and modular homes in the United States. The acquisition of American Homestar is expected to be accretive to earnings and cash flow from operations, providing potential operational and cost synergies [1]. Cavco's President and CEO, Bill Boor, stated, "Throughout the acquisition process, we developed a tremendous respect for what Buck Teeter, Dwayne Teeter, and the entire American Homestar team have built. American Homestar is a leader in our industry because it embodies the Teeters’ values and focus on providing quality homes for deserving families. We at Cavco are grateful for their trust and are excited to join forces in the South Central U.S." [1].

The acquisition will strengthen Cavco's position in the South Central U.S., expanding its presence across Texas and surrounding states, one of the country’s most important manufactured housing markets. Cavco expects the acquisition to enhance its market share and increase revenue potential in the region [1].

Following this strategic deployment of existing cash, Cavco will still maintain a significant cash position available for continued strategic investment. The transaction is expected to be funded entirely from the Company’s cash on hand [1].

References

[1] Cavco Industries, Inc. (2025). Press Release: Cavco Industries Announces Planned Acquisition of American Homestar Corporation. Retrieved from https://www.globenewswire.com/news-release/2025/07/14/3115215/9907/en/Cavco-Industries-Announces-Planned-Acquisition-of-Manufactured-Home-Builder-and-Retailer-American-Homestar-Corporation.html