COACHMEN INDUSTRIES EXPANDS MODULAR HOME SECTOR
COACHMEN FINALIZES TRANSACTION, ACQUIRES MOD-U-KRAF HOMES
ELKHART, Ind., June 22 /PRNewswire/ -- Coachmen Industries, Inc. (NYSE: COA -
news) of Elkhart, Indiana closed on a transaction today which officially adds
Mod-U-Kraf Homes, Inc. (OTC: MODU - news) to Coachmen's expanding modular home
sector. Coachmen acquired the Rocky Mount, Virginia-based company for $11.75 per
share, or a total consideration of nearly $10 million. The closing comes on the
heels of a Mod-U-Kraf shareholders meeting conducted on Wednesday, June 21 where
shareholders voted to approve the transaction. Mod-U-Kraf's shareholders will be
receiving instructions for exchanging their stock certificates for cash payments
in the mail.
"We are pleased Mod-U-Kraf shareholders have voted to approve this transaction,"
stated Claire C. Skinner, Chairman and Chief Executive Officer of Coachmen
Industries. Dale H. Powell, Mod-U-Kraf's President and Board Chairman concurred,
"We are very excited to join the Coachmen team. We believe strongly that the
association with Coachmen will provide us the opportunity to continue our
growth, expand our facilities and offer our employees greater opportunities." A
letter of intent to acquire all outstanding Mod-U-Kraf shares was signed on
March 13, 2000. The proposal to acquire the modular home builder demonstrated
Coachmen's commitment to a strategic plan that includes growing its housing
group through expansion of existing business and through acquisition of
companies that complement Coachmen's business goals. "Because Mod-U-Kraf matches
up well with our vision, values, practices and philosophies, we wanted to pursue
this acquisition opportunity," explained Skinner.
Mod-U-Kraf, who will retain both management and employees, will operate as a
separate entity under the Coachmen housing group. Also part of the housing group
is All American Homes, with five manufacturing locations. All American Homes is
the leading producer of modular, precision-built homes in the U.S. Unlike the
manufactured housing industry, Coachmen's modular homes are built to local and
state codes versus HUD codes.
Though Mod-U-Kraf is involved in the production of modular housing like All
American Homes, the company offers Coachmen new ventures with its Special
Projects Division. Serving the commercial building sector, the Special Projects
Division builds motels, townhouses, condominiums, apartments, dorms, business
offices, day care facilities and medical offices. All buildings comply with
commercial building codes and are reviewed by a third party inspection agency.
Building homes for over 28 years, Mod-U-Kraf currently operates out of two
plants. The company markets its products in Virginia, North Carolina, South
Carolina, West Virginia, Maryland, Northern Georgia, Eastern Tennessee and
Eastern Kentucky. In 1999, Mod-U-Kraf's sales were in the $22 million range.
Coachmen Industries, Inc. is one of the nation's leading producers of
recreational vehicles. Recreational vehicles comprised 83 percent of Coachmen's
1999 sales and modular homes represented 17 percent.
