One of the Leading Manufactured Home Builder and Retailer
Cavco is a leading builder and designer of custom-built structures like manufactured homes, commercial buildings, modular homes, vacation cabins, and even park model RVs. The company is known to operate as many as 19 manufacturing units across the entire country. These units are known to construct some of the most renowned brand names in the industry -including Fleetwood Homes, Cavco Homes, Destiny Homes, Chariot Eagle, Friendship Homes, Nationwide Homes, Palm Harbor Homes, and Fairmont Homes.
The company is also known to run its dedicated insurance group named Standard Casualty. It is responsible for offering a wide spectrum of insurance products for owners of manufactured homes. CountryPlace Mortgage is the financial subsidiary of Standard Casualty. It is responsible for offering a wide range of financing options for homebuyers. Cavco Industries is based out of Phoenix, Arizona. The company has been set up for delivering quality, service, and value since it was founded in 1965.
An Insight into the Systems-Built or Custom-built Manufactured Homes by Cavco
At Cavco, the systems-built or custom-built homes are manufactured under different trade names. These manufactured homes are available in multiple styles, price ranges, and floor plans. The company designs and constructs its homes to meet the right building standards like the HUD (House & Urban Development) of the US Department, IBC (International Building Code), UBC (Universal Building Code), and others. Following these standards, the company also constructs park model RVs according to the ANSI 119.5 Building Code.
The manufacturing centers by Cavco mobile homes are strategically positioned across the nation. The company leverages the research of the local market to design while offering a full range of mobile homes towards meeting the interests of the customers -from entry-level models to large-scale custom homes. The company features the ability to engineer customized designs in-house towards accommodating virtually all types of customer-centric requests.
The custom-made homes are built with immense precision in controlled indoor environments with the help of comprehensive construction processes and systems. In our comprehensive process, every home is assembled in stages under strict supervision. These factors allow the production of every manufactured home at an attractive price and within shorter durations or completion times in comparison to on-site construction methods.
Top-Quality Manufactured Homes at Cavco
The manufactured homes at Cavco Industries are distributed across independent retailers that are located throughout the United States along with Canada, Japan, and Mexico. With the help of company-owned retail centers, the production of manufactured homes takes place at efficient levels. The company customizes specifications and styles for the exclusive use of land or lease communities, developers, subdivisions, and large-scale multi-location distributors.
Cavco functions with multiple partners responsible for meeting an ever-expanding range of housing requirements -right from the private land of the homebuyer to resort or recreational properties to planned neighborhoods to even accommodations for workforces in industry and agriculture.
Cavco Industries is focused on the construction of energy-efficient, top-quality homes for modern-day homebuyers. The concept of green building includes the creation of an energy-efficient envelope including top utilization of highly renewable materials. These homes offer access to environmentally-friendly maintenance specifications, specially designed ventilation systems, high indoor air quality, passive solar orientation, and the overall best use of space. Cavco is also responsible for building homes that are designed to make use of alternative energy sources like wind and solar.
Recently, Cavco Industries made the announcement that it has signed a contract or binding offer to acquire the business of Solitaire Homes Inc. along with other entities -collectively known as Solitaire Homes. The acquisition also includes as many as four manufacturing facilities along with 22 retail locations and dedicated transportation operations. Solitaire Homes has its headquarters in Duncan in Oklahoma. For the year 2021, Solitaire Homes has been successful in achieving pro-forma earnings before ensuring taxes, amortization, and depreciation of around $16.5 million.
Solitaire currently features around 950 employees while operating manufacturing facilities across Mexico, New Mexico, and Oklahoma. The facilities across Mexico and New Mexico were successful in producing around 1600 homes during 2021. At the same time, the Oklahoma facility in Duncan had been recently reopened in 2022. For the two Mexico facilities, there is the presence of a dedicated warehouse in Presidio in Texas. The warehouse is responsible for acquiring and storing raw materials. Eventually, the raw materials are assembled directly across the Ojinaga border in Mexico.
The location of the retail stores is widespread across Texas, Oklahoma, and New Mexico. These are exclusively responsible for selling manufactured homes that are built by the manufacturing facilities of Solitaire Homes. The overall transportation business of Solitaire Homes allows the company to control and monitor the delivery of manufactured homes while minimizing reliance on third parties.
The purchase price is around $93 million. This is the price before final adjustments are executed based on the transaction’s closing. Through the alliance, Cavco expects funding the acquisition completely in the form of cash in hand. The transaction is looking forward to being closed during the 4th quarter of the company in 2023. It will ultimately be subject to applicable regulatory approvals along with the satisfaction of specific customary conditions.
Bill Boor -Chief Executive Officer and President at Cavco explains that the Elliott and Pete Hogstad family have come up with a strong and reliable company with a well-renowned reputation for the construction of top-quality manufactured homes. The acquisition and addition of Solitaire Homes to the existing retail and manufacturing system of Cavco Industries will only strengthen the overall position in the Southwest while expanding the respective manufacturing capabilities across Mexico. The team at Cavco looks forward to working with Solitaire Homes towards building the overall record of success.
D. J. Hogstad -President at Solitaire Homes explained that the company is excited to join Cavco. The combination of the companies will be providing new as well as exciting opportunities to continue the overall growth experienced quite lately -not just for appreciated customers, but also for valued employees.