Cavco Industries, Inc. announced on July 14, 2025, that it has entered into a definitive agreement to acquire American Homestar Corporation, known as Oak Creek Homes, for $190 million in cash. American Homestar is a Houston-based manufactured home builder and retailer, operating two manufacturing facilities and nineteen retail locations. The acquisition is expected to close in Cavco's third fiscal quarter of 2026, subject to regulatory approvals.
For the twelve months ended May 31, 2025, American Homestar generated revenues of $194 million, net income of $16.6 million, and Adjusted EBITDA of $17.8 million, producing 1,676 homes. Cavco plans to fund the acquisition entirely from its cash on hand. This strategic move is anticipated to bring significant cost reduction, product, and retail optimization benefits.
Cavco's President and CEO Bill Boor stated that the acquisition deepens Cavco's presence in a key manufactured housing market, particularly Texas. The deal is expected to be accretive to earnings and cash flow, with initial cost synergies from reduced material costs and shared services leveraging. Product optimization opportunities across the combined retail footprint are also anticipated.
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