Key insights
- Champion Homes (SKY) is acquiring 11 Homes Direct retail locations, expanding its presence in the Western US. This move signals potential growth and consolidation within the manufactured housing sector. While positive for SKY, the broader market impact is limited, suggesting a slightly bullish sentiment for the company itself.
TROY, Mich. - Champion Homes, Inc. (NYSE:SKY) announced today it has entered into a definitive agreement to acquire assets of Homes Direct representing 11 retail locations across Arizona, California, Colorado, New Mexico and Oregon. The $3.93 billion market cap company’s shares rose 8.85% over the past week following the announcement.
The locations represent the majority of Homes Direct’s operating footprint, according to a press release statement. Homes Direct describes itself as the largest independent manufactured and modular home dealer in the western region of the United States.
The company offers services including permitting, financing, home selection and site preparation. Homes Direct operates 15 total locations across the western United States, with four factory direct locations at Palm Harbor Homes in Oregon, Goldenwest Homes in California, Champion Homes in Arizona, and Karsten Homes in New Mexico.
"Homes Direct’s differentiated retail experience and significant western U.S. presence make this a natural fit," said Tim Larson, President and Chief Executive Officer of Champion Homes.
Ray Gritton, CEO of Homes Direct, stated, "Champion is an ideal long-term partner for Homes Direct, and I have significant trust in their team to take our assets forward."
The transaction is expected to close in Champion’s second quarter of fiscal year 2027, subject to customary closing conditions. All Homes Direct employees at the acquired locations will be offered employment by Champion following completion of the transaction. Champion’s strong financial position supports the acquisition, with an InvestingPro analysis showing the company holds more cash than debt on its balance sheet and maintains a current ratio of 2.71.
Champion Homes operates 46 manufacturing facilities throughout the United States and western Canada and employs more than 9,300 people. The company currently operates 84 retail locations across the United States.
The company also announced its fourth quarter and full year fiscal 2026 financial results in a separate release today. Trading at a P/E ratio of 18.87 with a PEG ratio of 0.57, InvestingPro data suggests the stock is trading at attractive levels relative to its growth prospects. For deeper insights into Champion Homes’ valuation and growth trajectory, investors can access the comprehensive Pro Research Report, available for SKY and 1,400+ other US equities.
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