Cavalier Homes (CAV) To Be Acquired For $2.75 Per Share

June 15, 2009 7:41 AM EDT
Cavalier Homes, Inc. (NYSE Amex: CAV) announced that its Board of Directors has entered into a definitive merger agreement for the Company to be acquired by Addison, Alabama-based Southern Energy Homes, Inc.

Terms of the agreement call for the payment of $2.75 cash for each outstanding share of common stock. Southern Energy Homes, Inc., a wholly owned subsidiary of Clayton Homes, is the industry leader in producing top-quality, customizable homes.

"The agreed share price represents a 23% premium over Friday's closing stock price in an all-cash offer to acquire Cavalier Homes," stated Bobby Tesney, Cavalier Homes' Chief Executive Officer. "Given the current economic conditions and the tough operating environment of the manufactured housing industry, the proposed merger with Southern Energy Homes represents a tremendous opportunity to maximize shareholder value.

"Our Board of Directors unanimously approved the proposed merger with Southern Energy Homes and believes this transaction is in our shareholders' best interests," Tesney added.

The Company expects to complete the transaction in the third quarter of 2009, subject to final documentation and other customary conditions, as well as the approval of Cavalier Homes' stockholders. Upon completion of the transaction, Cavalier Homes, Inc. will become a wholly owned subsidiary of Southern Energy Homes.

Cavalier Homes, Inc. and its subsidiaries produce and sell manufactured housing.[SM]

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