Cavco to acquire American Homestar for $190 million in cash

PHOENIX - Manufactured housing producer Cavco Industries, Inc. (NASDAQ:CVCO), a $3.65 billion market cap company with strong financial health according to InvestingPro, announced Monday it has entered into a definitive agreement to acquire American Homestar Corporation, known in the market as Oak Creek Homes, for $190 million in cash.

The Houston-based American Homestar operates two manufacturing facilities and 19 retail locations across Texas and surrounding states. The company also provides financing and insurance services for manufactured homes. For the twelve months ended May 31, 2025, American Homestar reported revenues of $194 million and net income of $16.6 million while producing 1,676 homes.

Cavco plans to fund the acquisition entirely from its cash reserves. The transaction is expected to close in Cavco’s third quarter of fiscal year 2026, subject to regulatory approvals and customary closing conditions.

"Throughout the acquisition process, we developed a tremendous respect for what Buck Teeter, Dwayne Teeter, and the entire American Homestar team have built," said Bill Boor, Cavco’s President and CEO, in a press release statement.

American Homestar, founded in 1971 by Buck Teeter, employs approximately 800 people. The company’s President and CEO Dwayne Teeter noted that the combination represents "a perfect cultural fit."

The acquisition will strengthen Cavco’s position in the South-Central United States, particularly in Texas and surrounding states, which represent key markets for manufactured housing. Cavco expects the transaction to be accretive to earnings and cash flow from operations.

Following the acquisition, Cavco will maintain a significant cash position for continued strategic investments, according to the company.

Cavco’s management will hold a conference call and webcast to discuss the transaction on July 16, 2025.

In other recent news, Cavco Industries reported its Q4 2025 financial results, which showed mixed outcomes. The company achieved a revenue of $508.4 million, slightly below the forecast of $512.49 million. Earnings per share (EPS) were also below expectations, reported at $5.4 compared to the anticipated $5.89. Despite these misses, Cavco Industries experienced a 21% year-over-year revenue growth, primarily driven by a 28.5% increase in homes sold within its factory-built housing segment. The company maintained a strong cash position with no debt and continued its strategic investments.

Analysts noted that Cavco Industries’ earnings report contrasted with its historical trend of meeting or exceeding expectations, which may have influenced the market’s negative reaction. The company is preparing for potential impacts from tariffs on materials sourced from China, which could affect costs by 5-8%. Cavco Industries is also focusing on strategic rebranding efforts to enhance its market presence. Looking ahead, analysts from firms such as CJS Securities and Wedbush have discussed the company’s potential challenges and opportunities, including production rate increases and macroeconomic factors that could impact the housing market.

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